Multiple Choice
Which of the following statements is incorrect about fundamental business strategies?
A) A company implementing a cost differentiation strategy is attempting to increase operating efficiency of assets and improve the inventory turnover ratio.
B) A company implementing a product differentiation strategy is attempting to improve its net profit margin through charging higher prices.
C) A company will be more profitable because it will attract a higher volume of customers and sales revenue when it follows a product differentiation strategy versus a cost differentiation strategy.
D) In general,a cost differentiation strategy results in lower profit margins whereas a product differentiation strategy results in higher profit margins.
Correct Answer:
Verified
Correct Answer:
Verified
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