Which of the following statements best define a product differentiation strategy?
A) It describes how an organization can increase customer base by differentiating its' product prices from its competitors.
B) It is an organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.
C) It describes how an organization can decrease product prices by differentiating its' raw materials from its competitors.
D) It is an organization's ability to offer products or services its customers perceive to be superior and unique relative to the products or services of its competitors.

Question

Quizplus · Accepted Answer

Product differentiation strategy focuses on differentiating an organization's products or services from its competitors by offering unique and superior perceived value to customers. This leads to a competitive advantage and increased customer loyalty. Options A and C talk about differentiation through prices, which is not the focus of product differentiation strategy. Option B describes a cost leadership strategy, which is different from a product differentiation strategy.

Which of the Following Statements Best Define a Product Differentiation