A manufacturer of jewelry imitates the style of a popular and expensive brand using manufactured stones rather than real gemstones and lesser grade metals rather than silver and gold. The manufacturer packages the jewelry in boxes of the same color imprinted with an almost identical logo. About 85 percent of the company's sales are through Internet sales. This example illustrates the competitive risk of ____ that threatens companies that use the differentiation strategy.

Question

Quizplus · Accepted Answer

The example given illustrates the threat of counterfeiting, as the manufacturer is imitating the style of a popular and expensive brand, and packaging the jewelry in boxes with a similar logo. This can confuse customers and erode the value of the original brand.

A Manufacturer of Jewelry Imitates the Style of a Popular