Allowances, like discounts, refer to
a. rewards given to retailers to encourage early payment.
b. payment extensions given to cash-strapped consumers during the current recession.
c. list price deductions based on surges in consumer demand.
d. list price deductions based on sudden drops in consumer demand.
e. reductions from list or quoted prices to buyers for performing some activity.
Answer:
A differentiation focus strategy refers to one of Porter’s generic business strategies that
a. involves controlling expenses and, in turn, lowering product prices targeted at a
narrow range of markets segments.
b. focuses on reducing expenses and, in turn, lowers product prices, while targeting a
broad array of market segments.
c. requires products to have significant points of difference to target one or only a few
market segments.
d. requires products to have significant points of difference to charge a higher price
while targeting a broad array of market segments.
e. seeks opportunities by finding the optimum balance between marketing efficiencies
versus R&D”manufacturing efficiencies.
Answer: