Which of the following statements is true?
A)Differentiation and cost structure decisions affect one another.
B)Differentiation and cost structure decisions do not affect one another.
C)Differentiation and cost structure decisions have little effect on a company's profitability.
D)Differentiation decisions do not affect a company's profitability.
E)Cost structure decisions do not affect a company's profitability.
Generally speaking,a differentiator chooses to divide its market into
A)one generic market.
B)two or three major segments.
C)niches and segments in which customers will pay premium prices.
D)as few segments as possible.
E)None of these choices.
A company pursuing a focus strategy
A)attempts to serve all market segments.
B)concentrates on building market share in one market segment.
C)typically has more resources at its disposal than a differentiator does.
D)need not be concerned that a differentiator will try to imitate the company's products or services.
E)none of these choices.
A company pursuing a cost-leadership strategy does which of the following?
A)Includes substandard components in the product to keep costs low
B)Chooses strategies that keep costs as low as feasible and are effective
C)Keeps advertising expenses at a maximum
D)Relies on patent protections to keep costs low
E)None of these choices