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A product differentiation strategy includes offering unique and superior products for increased prices. (Points : 5)

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1. A product differentiation strategy includes offering unique and superior products for increased prices. (Points : 5)

2. In markets with little or no competition, the key factor affecting price is costs, not customers' willingness to pay or competitors. (Points : 5)

3. Companies must always examine pricing decisions through the eyes of their customers. (Points : 5)

4. Cost information only helps the company decide how many units to produce. (Points : 5)

5. An increase of operating income from one year to the next indicates a company's strategy was successful. (Points : 5)

6. The product differentiation strategy is probably best for a company if the engineering staff is more skilled at making process improvements than at creatively designing new products. (Points : 5)

7. Relevant costs for pricing decisions include manufacturing costs, but not costs from other value-chain functions. (Points : 5)

8. Strategy describes how an organization matches its own capabilities with the opportunities in the marketplace to accomplish its overall objectives. (Points : 5)

9. In general, profit potential increases with greater competition, stronger potential entrants, products that are similar, and tougher customers and suppliers. (Points : 5)

10. The cost leadership strategy is for products and services that are similar to competitor's products and services. (Points : 5)

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