Firms seeking competitive advantage by pursuing a ____________ strategy must develop the capabilities to provide customers with the appropriate justification to make ultra-luxury purchases of these firms' goods and services.
A) cost leadership
B) differentiation
C) focus cost leadership
D) focus differentiation
E) None of these

Question

Quizplus · Accepted Answer

A focus differentiation strategy involves targeting a specific market segment with unique products or services that command a premium price. Firms employing this strategy must justify the high cost of their offerings by ensuring they meet the unique needs or preferences of their niche market, often through superior quality, exclusivity, or brand prestige, which aligns with the requirement to provide customers with justification for ultra-luxury purchases.

Firms Seeking Competitive Advantage by Pursuing a ____________ Strategy Must