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    Question

    If a bank reduces loan approval time to outperform

    competitors, it is competing primarily on:
    A Price Correct Answer Incorrect Answer
    B Product variety Correct Answer Incorrect Answer
    C Service differentiation Correct Answer Incorrect Answer
    D Market development Correct Answer Incorrect Answer
    E Brand dilution Correct Answer Incorrect Answer

    Solution

    Speed and convenience differentiate service offerings without altering price.  Why Other Options Are Incorrect • A: Price not changed. • B: Same product category. • D: Not entering new market. • E: Negative outcome.  Banking Example: 24-hour home loan approval promise.

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