The typical risks of a differentiation strategy do NOT include which of the following?
A) Customers may find the price differential between the low-cost product and the differentiated product too large.
B) Customers' experience with other products may narrow customers' perception of the value of a product's differentiated features.
C) Counterfeit goods are widely available and acceptable to customers.
D) Suppliers of raw materials erode the firm's profit margin with price increases.

Question

Quizplus · Accepted Answer

Differentiation strategy risks typically involve customer perception and market competition, not supplier pricing, which is more related to cost leadership strategies.

The Typical Risks of a Differentiation Strategy Do NOT Include