The differentiation strategy is effective for products that are expensive, luxury consumer goods. It is not effective for common, inexpensive products such as donuts.

Question

Quizplus · Accepted Answer

While the differentiation strategy may be more commonly used for luxury goods, it can still be effective for common, inexpensive products such as donuts. Differentiating a product through unique flavors, packaging, or marketing can help it stand out in a crowded market and appeal to specific target audiences. Therefore, the statement is false.

The Differentiation Strategy Is Effective for Products That Are Expensive