A distinguishing feature of the product/service differentiation competitive advantage is _____

a. using inexpensive raw materials
b. having a strong brand image

c. having low overhead costs

d. creating generic products

ANSWER: b

A product/service differentiation competitive advantage exists when a firm provides something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition. A strong brand image is an example of a product/service differentiation competitive advantage.