Question

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

Answer 1

False. A higher gross margin is not necessarily more consistent with a differentiation strategy.

Step-by-step explanation:

False. A higher gross margin is not necessarily more consistent with a differentiation strategy. Gross margin is a measure of profitability and is calculated by subtracting the cost of goods sold from total revenue, then dividing by total revenue. While a higher gross margin can indicate a higher level of profitability, it does not necessarily indicate a differentiation strategy. A differentiation strategy focuses on creating unique products or services that stand out in the market, while a high gross margin can be achieved through various strategies.