To gain as many customers as possible through product differentiation, a producer must consider _____ as the producer makes decisions about how to distinguish its product.
A)how rivals are positioning their products
B)what the desired product price should be
C)how to decrease market demand
D)how to increase demand elasticity

Question

Quizplus · Accepted Answer

To effectively differentiate a product, a producer must consider how its rivals are positioning their products. This will help the producer identify gaps in the market and develop unique features or attributes that will set its product apart from the competition. By understanding what its rivals are offering, a producer can also avoid duplicating their efforts and create a product that truly stands out in the eyes of customers. Factors such as pricing, market demand, and demand elasticity may also be important considerations, but they are secondary to understanding how to differentiate the product from the competition.

To Gain as Many Customers as Possible Through Product Differentiation