If a customer perceives that an established firm's products meet his/her needs in a unique way, the firm has succeeded in establishing
A) economies of scale
B) differentiation
C) switching costs
D) capital requirements

Question

Quizplus · Accepted Answer

Differentiation refers to the ability of a firm to provide unique and superior value to customers through its products or services. By meeting a customer's needs in a unique way, the firm has succeeded in establishing differentiation. Economies of scale and capital requirements refer to factors related to production efficiency and cost structure, while switching costs refer to the cost incurred by customers when switching from one firm's products to another.

If a Customer Perceives That an Established Firm's Products Meet