A broad differentiation strategy works best in situations where: a. technological change is slow-paced and new or improved products are infrequent.
b. buyer needs and uses of the product are very similar.
c. buyers incur low costs in switching their purchases to rival brands.
d. buyers have a low degree of bargaining power and purchase the product frequently.
e. technological change is fast-paced and competition revolves around rapidly evolving product features.

Ummit record company is negotiating with two banks for a $157,000 loan. fidelity bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments. southwest bank requires a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. the stated rate for both banks is 9 percent. compensating balances will be subtracted from the $157,000 in determining the available funds in part a. a-1. calculate the effective interest rate for fidelity bank and southwest bank. (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.) a-2. which loan should summit accept? southwest bank fidelity bank b. recompute the effective cost of interest, assuming that summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances