The greater a product's value gap, the more insulated the product is from price competition.

Question

Quizplus · Accepted Answer

The greater the value gap between a product and its competitors, the more unique and differentiated the product is, making it less susceptible to price competition. Consumers are willing to pay a higher price for a product that meets their needs better than its competitors. Therefore, the larger the value gap, the higher the product's perceived value, and the less important the price becomes in the purchase decision.

The Greater a Product's Value Gap, the More Insulated the Product