When a firm competes as a differentiator, it becomes a competitor that hopes to achieve ________.
A) higher margins due to a lower cost basis than rivals
B) higher prices and margins because of superior quality
C) lower prices and margins because of average quality
D) lower margins due to a higher cost basis than rivals

Question

Quizplus · Accepted Answer

When a firm competes as a differentiator, it focuses on providing superior quality or unique features that set it apart from competitors. As a result, it can charge higher prices for its products or services and maintain higher profit margins.

When a Firm Competes as a Differentiator, It Becomes a Competitor