A low-cost provider strategy can defeat a differentiation strategy when A. customers are basically satisfied and don't think extra attributes are worth a higher price features. B. there are few ways to differentiate a product or a service and many buyers perceive these differences valuable. C. sellers are not charging a price premium. D. a company can offset thinner profit margins per unit by selling enough additional units to increase total profits. E. many rivals are pursuing a similar differentiation approach.

You are the owner of a local honda dealership. unlike other dealerships in the area, you take pride in your “no haggle” sales policy. last year, your dealership earned record profits of $1.5 million. however, according to the local chamber of commerce, your earnings were 10 percent less than either of your competitors. in your market, the price elasticity of demand for midsized honda automobiles is 4.5. in each of the last five years, your dealership has sold more midsized automobiles than any other honda dealership in the nation. this entitled your dealership to an additional 30 percent off the manufacturer’s suggested retail price (msrp) in each year. taking this into account, your marginal cost of a midsized automobile is $11,000. what price should you charge for a midsized automobile if you expect to maintain your record sales?