When a firm is able to produce nonstandardized (that is, distinctive) products for customers who value differentiated features more than they value low cost, the firm is successfully implementing:
A) a differentiation strategy.
B) a cost leadership strategy.
C) an integrated cost leadership/differentiation strategy.
D) a single-product strategy.

Question

Quizplus · Accepted Answer

A differentiation strategy involves creating a unique product or service that offers something of value that competitors cannot match. This is achieved by adding unique features and attributes that are perceived as valuable by a specific group of customers. By doing so, the firm is able to charge a premium price for its products or services, as customers are willing to pay more for the added value.

When a Firm Is Able to Produce Nonstandardized (That Is