A differentiation strategy works best when a
A. firm has tangible resources, its focus of competition shifts to price, and equivalent substitutes are readily available.
B. firm has intangible resources, is able to pass on increases in supplier cost to the customer, and its differentiation appeal creates customer loyalty.
C. firm's differentiated products are commoditized, and costs of providing uniqueness do not rise above the customer's willingness to pay.
D. firm's focus of competition shifts to price, and when increasing differentiation of product features do not create additional value.
Answer: B
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