Price pressure will be more for undifferentiated products than differentiated products.

Question

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Undifferentiated products are largely interchangeable and have few distinguishing features, leading to a high degree of price sensitivity among consumers. This makes it more likely that consumers will select the lowest-priced option when making a purchase decision, leading to greater price pressure for undifferentiated products compared to differentiated products, which have unique features that can justify higher price points.

Price Pressure Will Be More for Undifferentiated Products Than Differentiated