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 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 or (2)lower the buyer's overall costs of using the company's product or (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

A differentiation-based competitive advantage requires developing distinctive competences that buyers consider valuable, which are often based on incorporating features that raise the performance of the product, lower the buyer's overall costs of using the company's product, enhance buyer satisfaction in intangible or noneconomic ways, or deliver value to customers by exploiting competitive capabilities that rivals can't match. While quality and service aspects may contribute to differentiation, this is not always the case. Effective marketing and advertising campaigns may increase awareness, but they do not necessarily differentiate a product from its competitors. A top-of-the-line product with premium features may command a higher price, but this does not necessarily create a differentiation-based competitive advantage.

A Differentiation-Based Competitive Advantage