A differentiation-based competitive advantage
A) nearly always is attached to the quality and service aspects of a company's product offering.
B) most often is the result of highly effective marketing and advertising campaigns designed to build awareness and recognition of the product or service offering.
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 biggest price premium in the industry.
E) often hinges on incorporating features that: (1) raise the performance of the product,(2) lower the buyer's overall costs of using the company's product,(3) enhance buyer satisfaction in intangible or noneconomic ways,or (4) deliver value to customers by exploiting competitive capabilities that rivals can't match.

Question

Quizplus · Accepted Answer

While a successful differentiation strategy must offer value in ways unmatched by rivals,a big issue in crafting a differentiation strategy is deciding what is valuable to customers.This can be accomplished in three ways: (1) include product attributes and user features that lower the buyer's costs,(2) incorporate tangible features that improve product performance,or (3) incorporate intangible features that enhance buyer satisfaction in noneconomic ways.

A Differentiation-Based Competitive Advantage