Which of the Following Constitutes a Disadvantage of the Differentiation

Multiple Choice

Which of the following constitutes a disadvantage of the differentiation strategy?

A) A differentiation strategy lacks the capacity to generate buyer loyalty.
B) Competitors are able to imitate the features well enough that they are no longer unique.
C) The firm needs to attract huge numbers of customers in order to have a good overall level of profit.
D) Differentiation lacks an ability to obtain premium prices from customers.
E) A differentiation strategy allows the entrance of new companies in the market.