When a firm competes as a differentiator, it becomes a competitor that hopes to

Question

When a firm competes as a differentiator, it becomes a competitor that hopes to achieve _____.

Lower prices and margins because of average quality

Lower margins due to a higher cost basis than rivals

Higher margins due to a lower cost basis than rivals

Higher prices and margins because of superior quality

Lower prices and margins because of average quality

Lower margins due to a higher cost basis than rivals

Higher margins due to a lower cost basis than rivals

Higher prices and margins because of superior quality

Explanation / Answer

d. higher prices and margins because of superior quality

A differentiator means the value delivery or any other thing offering to the customers which the competitors are not able to offer. The firm increases the quality of the products to be preferred by the customers and hence the prices are high and margin is high. The customers prefer to buy the superior quality product.

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