Question

A higher gross margin is more consistent with a differentiation strategy.
A. True
B. False

Answer 1

TRUE. A higher gross margin is true in line with a differentiation strategy.

Step-by-step explanation:

A higher gross margin is true in line with a differentiation strategy. In a differentiation strategy, a company tries to differentiate its products or services from its competitors by offering unique features or attributes that justify a higher price. A higher gross margin reflects that the company is able to charge a premium for its differentiated products, contributing to its competitive advantage.