For a differentiation strategy to be effective, the product difference should NOT be based on:
A) Product design
B) Method of distribution
C) Price
D) Broad market group of consumers

Question

Quizplus · Accepted Answer

A differentiation strategy should not be based on price because in a price-based differentiation strategy, the product is often perceived as a commodity, and customers are likely to choose the cheapest option. A effective differentiation strategy should be based on factors such as product design, method of distribution, and targeting a specific market group of consumers.

For a Differentiation Strategy to Be Effective, the Product Difference