A differentiation strategy can be effective in controlling the power of substitutes in an industry because:
A) customers have low switching costs.
B) substitute products are lower quality.
C) a differentiating firm can always lower prices.
D) customers develop brand loyalty.

Question

Quizplus · Accepted Answer

A differentiation strategy can create brand loyalty among customers, making them less likely to switch to substitute products even if they are available.

A Differentiation Strategy Can Be Effective in Controlling the Power