Price differentials facilitate market segmentation, allowing a firm to position its product differentially in different markets.

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Price differentials allow firms to price their products differently in different markets, which can help them target different customer segments and position their products accordingly. This is a form of market segmentation, as the firm can tailor its pricing and marketing strategies to meet the specific needs and preferences of different customer groups.

Price Differentials Facilitate Market Segmentation, Allowing a Firm to Position