Which of the Following Constitutes an Advantage of the Differentiation

Multiple Choice

Which of the following constitutes an advantage of the differentiation strategy?

A) It creates an ability to obtain premium prices from customers.
B) Companies following this strategy do not need to spend significant funds on advertising.
C) Companies following this strategy depend on their ability to reduce the price to drive competition out of the market.
D) Customers always prefer a product with features rather than a cheaper alternative.
E) Customers are always eager to pay extra to obtain the unique features that a firm is trying to build its strategy around.