For small businesses, product differentiation
A) is more difficult than it is for larger firms because of the high cost of product research and development.
B) usually concentrates on the pricing component of the total product offer.
C) can be an important strategy to gain market share.
D) is less important than it is for big firms with multiple product lines.

Question

Quizplus · Accepted Answer

For small businesses, product differentiation can be an important strategy to gain market share. Small businesses often face competition from larger firms, and product differentiation can help them stand out in the market. While research and development costs may be higher for small businesses, they can still find ways to differentiate their products by focusing on unique features or attributes that appeal to their target customers. Pricing may be a component of product differentiation, but it is not the only or primary focus. Additionally, product differentiation can be just as important for small firms as it is for large firms with multiple product lines.

For Small Businesses, Product Differentiation