The success of the generic strategy of differentiation depends on customers valuing the product or service characteristics on which managers have based their differentiation strategies.

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This statement is true. For a differentiation strategy to be successful, customers must value the unique features or characteristics that set the product or service apart from competitors. If customers do not perceive the difference as valuable, the differentiation strategy will not be effective.

The Success of the Generic Strategy of Differentiation Depends on Customers