In developing a compensation policy used to implement a product-differentiation strategy, firms will

		hold individuals responsible for experiments that fail.
		punish individuals for taking risks when their projects are not successful.
		simultaneously use multiple dimensions to examine employee performance.
		provide appropriate incentives for managers and employees to reduce costs.

1. According to Coach's website, the company has built a distinctive style and prestigious image over the past 40 years to develop a reputation as "America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves and fine jewelry." Coach employs a multi-channel distribution channel to reach its customers, including company-owned stores and boutiques in the stores of prominent specialty retailers both within the United States and abroad, and the company operates an online store. Consumers who purchase coach products are generally willing to pay the premium price due to the superior quality of Coach's products as well as the perceived prestige of owning a Coach product. Coach stresses these features in its advertising campaigns and regularly allows movies and television shows to favorably feature Coach products in appropriate scenes. Over the last five years. Coach has partnered with automobile manufacturers such as Lexus to produce automobiles with Coach interiors. In an effort to expand its international reach, Coach intends to increase its international distribution and is expanding into Japan through Coach Japan, Inc., a joint venture with a local company that will allow Coach to control international distribution and to maintain a consistent brand strategy domestically and abroad. The price premium that customers are willing to pay for the superior quality and perceived prestige of Coach's products over the prices of similar products are known as

   		marginal prices.
   		hedonic prices.
   		heroic prices.
   		elastic prices.

2. Product features, by themselves, are

   		usually not a source of temporary competitive advantage, but they can be a source of a sustainable competitive advantage.
   		usually not a source of either a temporary competitive advantage, or a source of a sustainable competitive advantage.
   		usually can be a source of both a temporary competitive advantage and a source of a sustainable competitive advantage.
   		usually not a source of sustained competitive advantage, but they can be a source of a temporary competitive advantage.

3. Product features, by themselves, are

   		usually not a source of temporary competitive advantage, but they can be a source of a sustainable competitive advantage.
   		usually not a source of either a temporary competitive advantage, or a source of a sustainable competitive advantage.
   		usually can be a source of both a temporary competitive advantage and a source of a sustainable competitive advantage.
   		usually not a source of sustained competitive advantage, but they can be a source of a temporary competitive advantage.