Q&A Hero

Q: Sometimes it makes sense for a company to go on the offensive to improve its market position and business performance. The best offensives tend to incorporate the following EXCEPT A) focusing relentlessly on building a competitive advantage. B) applying resources where rivals are least able to defend themselves. C) using a strategic offensive to allow the company to leverage its weaknesses to strengthen operating vulnerabilities. D) employing the elements of surprise as opposed to doing what rivals expect and are prepared for. E) displaying a strong bias for swift, decisive, and overwhelming actions to overpower rivals.

Q: All other things being equal, the "best" generic competitive strategy for a company to employ is a strategy that A) seeks to underprice rivals on comparable products that attract a broad spectrum of buyers. B) seeks to differentiate product offerings from rivals by offering superior attributes that attract a broad spectrum of buyers. C) concentrates on a narrow buyer segment and outcompetes rivals by offering niche members customized attributes. D) concentrates on value-conscious buyers and outcompetes rivals by offering products at attractive prices. E) is well matched to a company's internal situation; underpinned by an appropriate set of resources, know-how, and competitive capabilities; and difficult for rivals to match.

Q: The generic types of competitive strategies include A) market share growth provider, sales revenue leader strategy, and market share retention strategy. B) offensive strategies, defensive strategies, and counter maneuvers strategies. C) low-cost provider, broad differentiation, best-cost provider, focused low-cost, and focused differentiation strategies. D) low-cost/low-price strategies, high-quality/high-price strategies, and medium quality/medium price strategies. E) price leader strategies, price follower strategies, technology leader strategies, and first-mover strategies.

Q: A hit-and-run or guerrilla warfare type offensive strategy A) involves random offensive attacks used by a market leader to steal customers away from unsuspecting smaller rivals. B) involves undertaking surprise moves to secure an advantageous position in a fast-growing and profitable market segment; usually the guerrilla signals rivals that it will use deep price cuts to defend its newly won position. C) works best if the guerrilla is the industry's low-cost leader. D) involves pitting a small company's own competitive strengths head-on against the strengths of much larger rivals. E) involves unexpected attacks (usually by a small-to-medium size competitor) to grab sales and market share from complacent or distracted rivals.

Q: A boutique hotel chain provides upscale rooms and superior customer service at value prices. What strategy is the hotelier using to gain competitive advantage? A) a low-cost provider strategy B) a broad differentiation strategy C) a focused low-cost strategy D) a focused differentiation strategy E) a best-cost provider strategy

Q: Bonobos's Guideshop store concept allows men to have a personalized shopping experience, where they can try on clothing in any size or color, and then have it delivered the next day to their home or office. This fashion retail concept is a good example of A) an offensive strategy to leapfrog competitors by being the first adopter of next-generation technologies or being first to market with next-generation products. B) an offensive strategy to offer an equally good or better product at a lower price. C) an offensive strategy to seek uncharted waters and compete in blue oceans. D) a defensive strategy to minimize the competitive advantages of rivals. E) a defensive strategy to capture occupied territory by maneuvering around rivals.

Q: A low-cost leader can translate its low-cost advantage over rivals into superior profit performance by A) underpricing rivals and attracting quality-sensitive buyers in great enough numbers. B) maintaining the present price and using the lower-cost edge to earn a higher profit margin on each unit sold. C) going all out to use its cost advantage to capture a dominant share of the market. D) spending heavily on advertising to promote its cost advantage to build strong customer loyalty. E) outproducing rivals and thus having more available units for sale.

Q: The biggest and most important differences among the competitive strategies of different companies boil down to A) how they go about building a brand name image that buyers trust and whether they are a risk-taker or risk-avoider. B) the different ways the companies try to cope with the five competitive forces. C) whether a company's market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation. D) the kinds of actions companies take to improve their competitive assets and reduce their competitive liabilities. E) the relative emphasis they place on offensive versus defensive strategies.

Q: Whatever strategic approach is adopted by a company to deliver value, it nearly always requires A) that management undertake formal planning sessions with functional departments to ensure productivity improvement. B) the identification of strengths and weaknesses within the company. C) matching corporate identity with the corporate culture in order to integrate effort and build sales momentum. D) performing value chain activities differently than rivals and building competitively valuable resources and capabilities that rivals cannot readily match. E) constant efforts to thwart entry of new rivals and their attempts to create differentiated products with unit costs above price premium.

Q: How valuable a low-cost leader's cost advantage is depends on A) whether it is easy or inexpensive for rivals to copy the low-cost leader's methods or otherwise match its low costs. B) how easy it is for the low-cost leader to gain the biggest market share. C) the aggressiveness with which the low-cost leader pursues converting the cost advantage into the absolute lowest possible costs. D) the leader's ability to combine the cost advantage with a reputation for good quality. E) the low-cost leader's ability to be the industry leader in manufacturing innovation so as to keep lowering its manufacturing costs.

Q: While there are many routes to competitive advantage, the two biggest factors that distinguish one competitive strategy from another are A) whether a company can build a brand name and an image that buyers trust. B) whether a company's target market is broad or narrow and whether the company is pursuing a low-cost or differentiation strategy. C) whether a company can achieve lower costs than rivals and whether the company is pursuing the industry's sales and market share leader's role. D) whether a company can offer the lowest possible prices and whether the company can get the best suppliers in the market. E) whether a company's overall costs are lower than competitors' and whether the company can achieve strong product differentiation.

Q: The five generic competitive strategies are not characterized by a________ strategy. A) broad differentiation B) low-cost provider C) best-cost D) narrow differentiation E) high-cost

Q: A company's competitive strategy should A) ensure it is designed to concentrate on a small range of products so it can react quickly to competitive moves. B) be well matched to its internal situation and predicated on leveraging its collection of competitively valuable resources and competencies. C) be well matched to its resources and capabilities in order to incorporate standard attributes into its product offering. D) be supportive with its objective to become at least an average performer within its industry. E) be well attuned to doing an outstanding job of satisfying the needs and expectations of niche buyers.

Q: For a company's competitive strategy to succeed in delivering favorable performance and the intended competitive edge over rivals, it has to be well-matched to a company's internal situation and underpinned by an appropriate set of resources, know-how, and competitive capabilities. True or false? Explain your answer.

Q: One of the big dangers in crafting a competitive strategy is that managers, torn between the pros and cons of the various generic strategies, will opt for "stuck in the middle" strategies that represent compromises between lower costs and greater differentiation and between broad and narrow market appeal. True or false? Explain your answer.

Q: What are the distinctive features of a focused low-cost strategy? How does it differ from a low-cost leadership strategy?

Q: What are the keys to sustaining a focused low-cost strategy?

Q: Provide two examples of companies pursuing a low-cost strategy and two examples of companies pursuing a best-cost strategy and explain how their strategic targets are similar or different.

Q: Explain how the keys to sustaining a broad differentiation strategy differ from the keys to sustaining a best-cost producer strategy.

Q: What type of competitive advantage does a best-cost provider strategy aim at achieving? Explain what a company has to do to achieve this advantage.

Q: Explain how the marketing emphasis of a low-cost provider differs from the marketing emphasis of a best-cost provider.

Q: What are the distinctive features of a best-cost provider strategy? Under what circumstances is a best-cost provider strategy appealing?

Q: What are the pitfalls to be avoided in pursuing a broad differentiation strategy?

Q: In what market and competitive circumstances are focused low-cost and focused differentiation strategies not attractive?

Q: What are the distinctive features of a broad differentiation strategy? Under what circumstances is a broad differentiation strategy appealing?

Q: A mobile manufacturer decides to reduce the price of its latest line of smartphones, which are not the cheapest but have features that are popular among most users. Which strategy is the manufacturer using?

Q: What strategy would you recommend for a small-sized company entering a highly segmented market, each segment with a complex set of needs and spending power?

Q: What market conditions and circumstances make a low-cost provider strategy attractive? What are the pitfalls in pursuing a low-cost provider strategy? What can go wrong?

Q: Match each of the organizations/companies below to its competitive strategy. Explain your choices. Organization/Company Competitive Strategy Clincasdel Azcar Low cost Canada Goose Focused low cost Prada Differentiation Trader Joe's Focused differentiation Vanguard Best-Cost

Q: What are the distinctive features of a focused differentiation strategy? How is it different from a broad differentiation strategy?

Q: Describe the two basic cost-reducing approaches a company can take to become a low-cost provider in its industry.

Q: Describe the strategy of striving to be the industry's overall low-cost provider. What does a company have to do to achieve low-cost provider status?

Q: Compare and contrast cost drivers and uniqueness drivers in a company's value chain. Explain how these drivers might support a firm's generic strategy.

Q: For all types of generic strategies, a company's success in sustaining its competitive edge depends on A) its market and competitive environment, a defensible niche, and a homogeneous strategic group. B) establishing a central theme for how the company will endeavor to outcompete its rivals and engage complementors with cooperative strategies. C) having resources and capabilities that rivals have trouble duplicating and for which there are no good substitutes. D) defining its differences in terms of product line, production emphasis, location, joint ventures, and strategic alliances. E) defining its differences in terms of marketing emphasis, strategic group intracompetition, and the means of maintaining strategy.

Q: Identify uniqueness drivers in a company's value chain. Explain how these drivers impact a firm's generic strategy.

Q: Success with a best-cost provider strategy designed to outcompete high-end differentiators requires A) achieving significantly lower costs in providing the upscale features. B) providing significantly better product attributes in order to justify a price above what low-cost leaders are charging. C) matching the company's resources and capabilities to a low-cost provider status. D) motivating buyers to purchase upscale features that match rivals. E) achieving the lowest costs in the industry.

Q: Identify cost drivers in a company's value chain. Explain how these drivers impact a firm's generic strategy.

Q: Trader Joe's biggest vulnerability in employing a best-cost provider strategy is A) relying too heavily on outsourcing. B) getting squeezed between the strategies of firms employing low-cost provider strategies and high-end differentiation strategies. C) getting trapped in a price war with low-cost leaders. D) being timid in cutting its prices far enough below high-end differentiators to win away many of their customers. E) not having a sustainable distinctive competence in cost reduction.

Q: What are the five generic competitive strategies? Briefly describe each one and identify the type of competitive advantage that each strategy is aimed at achieving.

Q: An approach that is UNLIKELY to help a company's low-cost provider strategy succeed is A) possessing resources and capabilities to keep costs below those of its competitors. B) pursuing cost-effective management of value chain activities better than rivals. C) deploying effective leveraging of cost drivers. D) having the innovative capability to bypass certain value chain activities being performed by rivals. E) evolving the capabilities to simultaneously deliver lower cost and higher-quality/differentiated features.

Q: The big danger or risk of a best-cost provider strategy is A) that buyers will be highly skeptical about paying a relatively low price for upscale attributes/features. B) not establishing strong alliances and partnerships with key suppliers. C) that rivals with low-cost provider strategies will be able to steal away some customers on the basis of a lower price, and high-end differentiators will be able to steal away customers with the appeal of better product attributes. D) that it will be unable to achieve top-notch quality at a rock-bottom cost. E) becoming too highly integrated and not relying enough on outsourcing.

Q: Best-cost provider strategies are appealing in those market situations where A) diverse buyer preferences make product differentiation the norm and where a large number of value-conscious buyers can be induced to purchase mid-range products. B) a company is positioned between competitors who have ultra-low prices and competitors who have top-notch products in terms of both quality and performance. C) buyers are more quality-conscious than price-conscious. D) there are numerous buyer segments, buyer needs are diverse across these segments, only a few of the segments are growing rapidly, and sellers' products are strongly differentiated. E) buyers are more performance-conscious than value-conscious.

Q: A production-based emphasis toward a low-cost provider strategy usually requires a company to strive for A) product superiority. B) continuous cost reductions without sacrificing acceptable quality and essential features. C) small-scale production or custom-made products that match the tastes and requirements of niche members. D) appealing features and better quality at lower costs than rivals. E) whatever differentiating features buyers are willing to pay for.

Q: The target market of a best-cost provider is A) value-conscious buyers. B) brand-conscious buyers. C) price-sensitive buyers. D) middle-income buyers. E) young adults (in the 1835 age group).

Q: The underlying criteria of a best-cost provider strategy usually is found in the ability of a company to A) offer better goods at attractive prices. B) create attributes that appeal specifically to niche members. C) lower overall costs more than rivals in serving niche members. D) offer buyers something attractively different from competitors' offerings. E) offer the best product at the industry's lowest possible price.

Q: The marketing emphasis of a company pursuing a focused low-cost provider strategy usually is to A) tout the company's lower prices. B) tout the lack of frills and extras. C) out-advertise rivals and make frequent use of discount coupons. D) communicate the attractive features of a budget-priced product offering that fits niche members' expectations. E) communicate the product's ability to serve the customer's every need.

Q: For a best-cost provider strategy to be successful, a company must have A) excellent marketing and sales skills in convincing buyers to pay a premium price for the attributes/features incorporated in its product. B) resource strengths and competitive capabilities that allow it to incorporate upscale attributes at lower costs than rivals whose products have similar upscale attributes. C) access to greater learning/experience curve effects and scale economies than rivals. D) one of the best-known and most respected brand names in the industry. E) a short, low-cost value chain.

Q: The keys to maintaining a broad differentiation strategy are to A) stress constant innovation to stay ahead of imitative rivals and to concentrate on a few differentiating features. B) charge a premium price that more than covers the extra costs of differentiating features and to convince customers to be brand loyal. C) out-innovate and out-advertise rivals. D) emphasize personalized customer service and to add as many differentiating features as possible. E) keep prices close to the average of all rivals and to spend heavily on new product R&D.

Q: The competitive advantage of a best-cost provider like Trader Joe's is A) having the best value chain in the industry. B) its brand name reputation. C) its capability to incorporate upscale or attractive attributes into its product offerings at lower costs than rivals. D) a distinctive competence in delivering top-notch quality and customer service. E) a distinctive competence in supply chain management.

Q: The marketing emphasis of a company pursuing a broad differentiation strategy usually is to A) underprice rival brands with comparable features. B) tout differentiating features and charge a premium price that more than covers the extra costs of differentiating features. C) out-advertise rivals and make frequent use of discount coupons. D) emphasize selling directly to end users and promoting personalized customer service. E) communicate the product's ability to serve the customer's every need.

Q: What is the primary target market for a best-cost provider? A) value-hunting buyers B) price-conscious buyers C) best-price driven buyers D) value-conscious buyers E) brand-conscious buyer

Q: The production emphasis of a company pursuing a broad differentiation strategy usually involves A) eliminating cost reduction and decreasing quality and essential features to boost profitability. B) strong efforts to be a leader in manufacturing process innovation. C) emphasis on building differentiating features that buyers are willing to pay for and includes wide selection and many product variations. D) the aggressive pursuit of economies of scale and experience-curve effects. E) developing a distinctive competence in zero-defect manufacturing techniques.

Q: The competitive objective of a best-cost provider strategy is to A) outmatch the resource strengths of both low-cost providers and differentiators. B) position the company outside the competitive arena of low-cost producers and differentiators. C) meet or exceed buyer expectations on key quality/performance/features/service attributes and beat their expectations on price (given what rivals are charging for much the same attributes). D) deliver superior value to buyers by doing such a good job of cost control that it ends up with the best cost (as compared to rivals) in performing each activity in its value chain. E) identify and concentrate on those differentiating features that are inexpensive to incorporate.

Q: The objective of a best-cost provider strategy is to A) deliver superior value to value-conscious buyers at a comparatively lower price than rivals. B) offer buyers the industry's best-performing product at the best cost and best (lowest) price in the industry. C) attract buyers on the basis of having the industry's overall best-performing product at a price that is slightly below the industry-average price. D) outcompete rivals using low-cost provider strategies. E) translate its best-cost status into achieving the highest profit margins of any firm in the industry.

Q: A firm pursuing a best-cost provider strategy A) seeks to be the low-cost provider in the largest and fastest growing (or best) market segment. B) tries to have the best cost (as compared to rivals) for each activity in the industry's value chain. C) tries to outcompete a low-cost provider by attracting buyers on the basis of charging the best price. D) seeks to deliver superior value to buyers by satisfying their expectations on key attributes and beating rivals in meeting customer expectations on price. E) seeks to achieve the best costs by using the best operating practices and incorporating the best features and attributes.

Q: Market circumstances that make a focused low-cost or focused differentiation strategy attractive are characterized by A) a target market niche that is too small to be profitable and offers low growth potential. B) an industry has few or no segments and market niches, thereby precluding the choice of an attractive niche suited to a company's resource strengths and capabilities. C) high costs or increased difficulty for multisegment rivals to meet the specialized needs of the target market niche and at the same time satisfy the expectations of their mainstream customers. D) intense competition from industry leaders in the niche or focused segment. E) few, if any, rivals are attempting to specialize in the same target segment.

Q: To profitably employ a best-cost provider strategy, a company must have the resources and capabilities to A) sell a product with the best cost at the best price. B) have the best cost (as compared to rivals) for each activity in the industry's value chain. C) provide buyers with the best attributes at the best cost. D) incorporate attractive or upscale attributes into its product offering at a lower cost than rivals. E) do a better job than rivals of adopting the best operating practices.

Q: A focused low-cost strategy can lead to attractive competitive advantage when A) buyers are looking for the best value at the best price. B) buyers are looking for a budget-priced product. C) buyers are price sensitive and are attracted to brands with low switching costs. D) a market is emerging and demand in the target market niche is growing rapidly and is served by industry-wide competitors. E) a firm can lower costs significantly by limiting its customer base to a well-defined buyer segment.

Q: Best-cost provider strategies are those that A) are a hybrid of low-cost provider and differentiation strategies that aim at providing desired attributes while beating rivals on price. B) are rewarded by providing buyers with the best attributes at a premium. C) have strategy elements related to the lowest-cost provider in the largest and fastest growing (or best) market segment. D) look for a low-cost advantage rather than a differentiation advantage. E) look for a differentiation advantage rather than a low-cost advantage.

Q: Focusing the ability can secure a competitive edge but also carries some risks that could be detrimental to the focused firm, such as A) the likelihood that a focused company will become so cost efficient it will achieve excessive profits. B) the potential for the preferences and needs of niche members to shift over time toward mainstream provider product attributes. C) the potential for the niche to become so attractive it will not attract new competitors thereby providing excessive market segment profits. D) the potential for technological advances to favor only low-cost providers. E) the likelihood that a focused company will become so cost inefficient it will achieve excessive profits.

Q: A focused low-cost strategy seeks to achieve competitive advantage by A) outmatching competitors in offering niche members an absolute rock-bottom price. B) delivering more value for lesser money than other competitors. C) performing the primary value chain activities at a lower cost per unit than can the industry's low-cost leaders. D) dominating more market niches in the industry via a lower cost and a lower price than any other rival. E) serving buyers in a narrow piece of the total market (target market niche) at a lower cost and lower price than rivals.

Q: Focusing carries several risks, one of which is the A) chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. B) chance that competitors will find effective ways to match the focused firm's capabilities in serving the target market. C) potential for the segment to be highly vulnerable to economic cycles. D) potential for the segment to become too specialized for other multisegmented rivals to enter. E) inability of a company to compete industry-wide.

Q: What sets focused (or market niche) strategies apart from low-cost leadership and broad differentiation strategies is A) the extra attention paid to top-notch product performance and product quality. B) their concentrated attention on serving the needs of buyers in a narrow piece of the overall market. C) greater opportunity for competitive advantage. D) their suitability for market situations where most industry rivals have weakly differentiated products. E) their objective of delivering more value for the least money.

Q: Focused strategies keyed either to low cost or differentiation are especially appropriate for situations where A) the market is composed of distinctly different buyer groups who have different needs or use the product in different ways. B) most other rival firms are using a best-cost producer strategy. C) buyers have strong bargaining power and entry barriers are low. D) most industry rivals have weakly differentiated products. E) most industry participants are also using a focused differentiation strategy.

Q: The risks of a focused strategy for a company like Canada Goose are the A) chance that niche customers will bargain more aggressively for good deals than customers in the overall marketplace. B) potential for the preferences and needs of niche members to shift over time toward product attributes desired by buyers in the mainstream portion of the market. C) potential for the segment to be highly vulnerable to economic cycles. D) potential for segment growth to race beyond the production or service capabilities of incumbent firms. E) potential for the segment to become too specialized for other multisegmented rivals to enter.

Q: A government oil company is having trouble with the private refineries and transporters to whom it delegates important stages of production. It decides to become more active along the entire supply chain from locating deposits to retailing the fuel to consumers. Which of the following does it intend to achieve? A) outsourcing B) economies of scale C) increase inputs D) advanced production technology E) vertical integration

Q: Differentiation strategies A) strive to create value for customers. B) offer trivial improvements in quality, service, or performance features. C) often result in overcharging for the differentiating features. D) add so many frills and extra features that the end product exceeds the needs of buyers. E) often result in overspending on efforts to differentiate the company's product offering.

Q: A drink manufacturer finds setting up a plant to make its own bottle caps expensive and technically difficult. Which of the following will be most helpful in solving the manufacturer's problem? A) outsourcing B) achieving economies of scale C) lowering input costs D) increasing bargaining power E) going for a vertical integration with a distributor

Q: A pitfall to avoid in pursuing a differentiation strategy is B) choosing a product offering that supports buyers' indifference to rival brands' offerings. C) charging a premium price for the differentiating features. D) meeting and exceeding the meaningful gaps in quality, performance, service, and other attractive differentiating attributes offered by rivals. E) spending on activities to differentiate the company's product to enhance profitability.

Q: A low-cost provider strategy can defeat a differentiation strategy when A) sellers are not charging a price premium. B) many rivals are pursuing a similar differentiation approach. C) a company can offset thinner profit margins per unit by selling enough additional units to increase total profits. D) there are few ways to differentiate a product or a service and many buyers perceive these differences valuable. E) customers are basically satisfied and don't think extra attributes are worth a higher price.

Q: The major difference between a low-cost provider strategy and a focused low-cost strategy is the A) amount of outsourcing involved. B) length of the managerial experience curve. C) size of the buyer group to which a company is appealing. D) number of upscale attributes incorporated into the product offering. E) production methods being used to achieve a low-cost competitive advantage.

Q: A broad differentiation strategy is generally not suitable for attaining a competitive advantage when A) buyer needs and preferences are too diverse to be fully satisfied by a standardized product. B) few rivals are pursuing a similar differentiation approach. C) products of rivals are weakly differentiated. D) there are many ways to differentiate a product or a service and many buyers perceive these differences valuable. E) technological change is fast-paced and competition revolves around rapidly evolving product features.

Q: A focused differentiation strategy aims at securing competitive advantage by A) providing niche members with a top-of-the-line product at a premium price. B) catering to buyers looking for an upscale product at an attractively low price. C) offering a product carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers. D) developing product attributes that no other company in the industry has. E) convincing a narrow, well-defined group of buyers that the company has a truly world-class product.

Q: A broad differentiation strategy generally produces the best results in situations where A) buyer brand loyalty is low. B) few rival firms are following a similar differentiation approach. C) new and improved products are introduced only infrequently. D) most rivals are pursuing a differentiation strategy and are seeking to differentiate their products on most of the same features and attributes. E) perceived value of a product is not of great importance.

Q: A broad differentiation strategy works best in situations where A) technological change is slow-paced and new or improved products are infrequent. B) buyer needs and uses of the product or service are very similar. C) buyers incur low costs in switching their purchases to rival brands. D) buyers have a low degree of bargaining power and purchase the product frequently. E) buyer needs and uses of the product or service are diverse.

Q: Broad differentiation strategies generally work best in market situations where A) low-cost value drivers are easily obtained. B) socially complex intangible attributes such as company reputation, long-standing relationships with buyers, and image are relatively easier to imitate. C) the products of rivals are weakly differentiated and most competitors are resorting to clever advertising to try to set their product offerings apart. D) technological change is fast-paced and competition revolves around rapidly evolving product features. E) market competition revolves around slowly evolving product features.

Q: Broad differentiation strategies are well-suited for market circumstances where A) there are many ways to differentiate the product or service that has value to buyers. B) most buyers have the same needs and use the product in the same ways. C) technological changes are slow-paced. D) barriers to entry are high and suppliers have a low degree of bargaining power. E) price competition is especially vigorous.

Q: Brands create customer loyalty, which in turn A) increases the perceived cost of switching to another product. B) strengthens the product's quality. C) validates the motivation for alternate products. D) provides monetary incentive for using the product. E) allows a company to operate facilities at full capacity.

Q: Perceived value and signaling value are often an important part of a successful differentiation strategy because A) of the standardization of buyer needs and preferences. B) buyers seldom will pay for value they don't perceive, no matter how real the value of the differentiating extras may be. C) buyer satisfaction cannot be achieved until a product's value is promoted through clever ads. D) differentiation is all about selling products to sophisticated buyers. E) there are no other ways to differentiate a product.

Q: Hilton Hotels has diversified its lodging brands by adding Curio Collection, Tapestry Collection, and Canopy by Hilton, properties that offer stylish, distinctive decors and personalized services that appeal to young professionals seeking distinctive lodging alternatives. Managers can enhance the differentiation of these new brands based on all of these value drivers except A) striving to create superior product features, design, and performance. B) striving for innovation and technological advances. C) pursuing continuous quality improvement. D) increasing the intensity of marketing, brand building, and sales activities. E) seeking out low-quality inputs.