Which of the following is true of product differentiation?
A)It is a matter of customer thought and perception.
B)It cannot occur when two companies use similar technologies.
C)It does not typically require higher costs.
D)It is independent of intangible features such as brand image and value.

Question

Quizplus · Accepted Answer

Product differentiation is a marketing strategy in which a company tries to make its product or service unique and different from its competitors in the eyes of the customer. It is a matter of perception because the customers must see the difference for it to be effective.

Answer: C 
 While product differentiation might require some additional costs, it does not typically require higher costs. In fact, companies can differentiate their products by changing the packaging, the design, the quality or the features, without significantly increasing the production costs.

Which of the Following Is True of Product Differentiation