A. The pitfalls of a differentiation strategyinclude

1. charging too high a price premium for the differentiatingfeatures

2. differentiating on the basis of attributes that buyers do notperceive as valuable or worth paying for

3. differentiating on the basis of attributes or features thatare not easily copied

4. a and b

5. a and c

6. b and c

7. a, b, and c

B. A winning strategy is one that

1. makes the company a market leader, is ethically and sociallyresponsible, and maximizes profit

2. is highly profitable and boosts the company’s marketshare

3. passes the profitability test, the ethics and socialresponsibility test, and the customer satisfaction test

4. passes the profitability test, the ethics and socialresponsibility test, and the competitive advantage test

5. fits the company’s internal and external situation and buildssustainable competitive advantage