A Broad Differentiation Strategy Improves Profitability When

Multiple Choice

A broad differentiation strategy improves profitability when

A) it is focused on product innovation.
B) differentiating enhances product performance.
C) the differentiating features appeal to sophisticated and prestigious buyers.
D) the extra price the product commands exceeds the added costs of achieving the differentiation.
E) the differentiator charges a price that is only fractionally higher than the industry's low-cost provider.