A differentiation strategy works well when ________.
A)a company designs a universal product for a broad market
B)buyers believe minor product differences are irrelevant to price
C)buyers are highly sensitive to price shifts and quality control
D)a company can continually develop products that have unique features

Question

Quizplus · Accepted Answer

A differentiation strategy is effective when a company can continuously develop products that have unique and valuable features that set them apart from competitors. This strategy allows the company to charge a premium price and maintain customer loyalty even in a highly competitive market. Option A is incorrect because a universal product may not appeal to all customers, and it would not offer anything unique or differentiated. Option B is incorrect because if buyers believe that minor product differences are irrelevant to price, they are less likely to pay a premium price for a differentiated product. Option C is incorrect because buyers who are highly sensitive to price shifts and quality control may not be willing to pay the premium price associated with a differentiated product.

A Differentiation Strategy Works Well When ________