Explain about the cost of differentiation in line
Explain about the cost of differentiation in line.
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Keeping the Cost of the Differentiation within line
a. The deception to profitable differentiation is either to keep the costs of achieving differentiation underneath the price premium the differentiating characteristics can command in the market-place or to offset thinner benefit margins with enough additional volume to boost total benefits.
b. It usually creates sense to incorporate differentiating features that are not expensive but that add to purchaser satisfaction.
What are strategic choices and operating decisions in controlling the cost drivers?
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