Blind taste-tests have shown that the taste of premium-priced vodkas and inexpensive vodkas are indistinguishable even to regular drinkers of vodka.But the sales of premium vodkas are thriving.This is an example of the:
A) perception of perceived prestige and status as a means of differentiating a product.
B) importance of high-quality raw materials when using the differentiation strategy.
C) risk of product imitation by competitors.
D) danger counterfeiting holds for firms pursuing the differentiation strategy.

Question

Quizplus · Accepted Answer

The thriving sales of premium vodkas despite indistinguishable taste suggest that consumers perceive prestige and status in purchasing higher-priced brands, which differentiates the product in the market.

Blind Taste-Tests Have Shown That the Taste of Premium-Priced Vodkas