The differentiation strategy calls for a firm to provide products that:
A)have acceptable features
B)incorporate features for which the customer will pay a premium
C)are the lowest cost possible
D)solve the problem of being 'stuck in the middle'

Question

Quizplus · Accepted Answer

The differentiation strategy is all about providing unique and valuable features that customers will pay a premium for. This allows the company to stand out from competitors and earn higher profits. Option A only mentions acceptable features, which may not be enough to differentiate from other products. Option C suggests a focus on cost, which is not the goal of differentiation. Option D refers to a situation where a company fails to effectively implement either a cost leadership or differentiation strategy, making it important to avoid being "stuck in the middle," but it doesn't suggest what products to provide.

The Differentiation Strategy Calls for a Firm to Provide Products