Product differentiation can be of value to a firm because
A)no other firm will be able to meet the same basic consumer need.
B)the product will always be patented.
C)some consumers with certain tastes will likely buy the product.
D)money is often spent to develop a differentiated product.
E)product differentiation lowers product prices for consumers.

Question

Quizplus · Accepted Answer

Product differentiation can help a firm appeal to specific groups of consumers with certain tastes or preferences, potentially increasing sales and profits. However, A, B, D, and E are not necessarily true or applicable in all cases.

Product Differentiation Can Be of Value to a Firm Because