Which of the following is a distinct feature of a product/service differentiation competitive advantage?
a. Using government subsidies
b. Controlling overhead costs
c. Establishing a brand name
d. Obtaining inexpensive raw materials
ANSWER: c
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. Establishing a brand name is an example of a product/service differentiation competitive advantage.
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