Peregrine Exam Day 5 Questions and Verified Answers| 100% Correct| Grade A+

cost control - A business's efforts to manage how much it spends. Cost control is always important - factor in maintaining and growing profitability Outsourcing is a common method to control costs - because many businesses find it cheaper to pay a third part to perform a task than to take on the work within a company. product differentiation - a positioning strategy that some firms use to distinguish their products from those of competitors Product differentiation focuses on the consumers' attention on one or more - key benefits of a brand that makes it better than other choices Differentiation may be - reflected in the name, packaging, and promotion of a product A product differentiation strategy should - demonstrate that a product can do everything the competing choices can but has additional benefits no one else offers. Types of product differentitation - price, performance and reliability, location and service Price - Companies can charge the lowest price to attract buyers that are cost-conscious. Companies can also charge higher prices to show that it's a luxury product