A differentiation-based competitive advantage:
A) nearly always is attached to the quality and service aspects of a company's product offering.
B) most usually is the result of highly effective marketing and advertising to enhance the brand,raise awareness,and build consistent customer experience.
C) requires developing at least one distinctive competence that buyers consider valuable.
D) hinges on a company's success in developing top-of-the-line product features that will command the highest price premium in the industry.
E) often hinges on incorporating features that raise the performance of the product or lower the buyer's overall costs of using the company's product,or enhances buyer satisfaction in intangible or non-economic ways,or delivers value to customers by differentiating on the basis of competencies and capabilities that rivals can't match.

Question

Quizplus · Accepted Answer

A differentiation-based competitive advantage often relies on incorporating features that offer a better performance of the product, lower the buyer's overall costs of using the company's product, enhance buyer satisfaction in intangible or non-economic ways, or deliver value to customers based on competencies and capabilities that rivals can't match. While quality, service, marketing, and top-of-the-line product features can contribute, the distinctive competence that buyers consider valuable is the key component of differentiation.

A Differentiation-Based Competitive Advantage