When a company is concerned that the higher price it charges for its higher quality is too far above the price of the competition,the company is likely addressing a risk of following which competitive strategy?
A) cost leadership
B) focus
C) stuck-in-the-middle
D) differentiation
E) competitive scope

Question

Quizplus · Accepted Answer

Differentiation strategy involves offering unique products or services that justify a higher price. When a company worries its prices are too high compared to competitors, it's concerned about the sustainability of its differentiation strategy, fearing that customers may not perceive enough value in the higher quality to warrant the higher price.

When a Company Is Concerned That the Higher Price It