A broad differentiation strategy works best in situations characterized by
A)slow-paced technological change and infrequent new or improved product introductions.
B)similar buyer needs and uses of the product.
C)low switching costs to rival brands incurred by buyers.
D)low bargaining power and frequent purchases by buyers.
E)fast-paced technological change and rapidly evolving product features that drive competition.

Question

Quizplus · Accepted Answer

A broad differentiation strategy works best in fast-paced technological change and rapidly evolving product features that drive competition. This is because a broad differentiation strategy focuses on creating unique and superior products that are better than competitors, and in an environment where technology is evolving rapidly, this creates the opportunity to offer novel and innovative features that separate a product from others. In a slow-paced technological change and infrequent new or improved product introductions, buyers may not be interested in paying a premium for unique features, making a broad differentiation strategy less effective. Similarly, in situations where buyers have low switching costs to rival brands or have similar needs and uses for the product, a broad differentiation strategy may not be the best approach. Low bargaining power and frequent purchases by buyers don't influence the choice of the broad differentiation strategy.

A Broad Differentiation Strategy Works Best in Situations Characterized by