Which of the following statements is incorrect about fundamental business strate

Question

Which of the following statements is incorrect about fundamental business strategies? A company will be more profitable because it will attract a higher volume of customers and sales revenue when it follows a product differentiation strategy versus a cost differentiation strategy. A company implementing a product differentiation strategy is attempting to improve its profit margin through charging higher prices. A company implementing a cost differentiation strategy is attempting to increase operating efficiency of assets and improve the asset turnover ratio. Financial leverage is how a company finances its assets and can affect total profitability return to stockholders.

Explanation / Answer

According to me these statement is incorrect

A company implementing a product differentiation strategy is attempting to improve its profit margin through charging higher prices. i.e option 2

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