The differentiation strategy is effective for products that are expensive,luxury consumer goods. It is not effective for common,inexpensive products such as doughnuts.

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Quizplus · Accepted Answer

The statement is not entirely true as differentiation strategy can be effective for common, inexpensive products as well. The key is to identify a unique aspect or feature that sets the product apart from competitors and appeals to a specific target market. For example, a doughnut shop could differentiate itself by offering unique and gourmet flavors, or by using only organic and locally sourced ingredients. However, in general, differentiation strategy is more commonly associated with expensive and luxury products that can command higher prices due to their unique features or brand reputation.

The Differentiation Strategy Is Effective for Products That Are Expensive,luxury