A broad differentiation strategy works best in situations where
A)technological change is slow-paced and new or improved products are infrequent.
B)buyer needs and uses of the product or service are very similar.
C)buyers incur low costs in switching their purchases to rival brands.
D)buyers have a low degree of bargaining power and purchase the product frequently.
E)buyer needs and uses of the product or service are diverse.

Question

Quizplus · Accepted Answer

A broad differentiation strategy would work best when there are diverse buyer needs and uses of the product or service. This allows the company to differentiate their offering based on the unique needs and preferences of different customer segments. In contrast, options A, B, C, and D do not necessarily require a broad differentiation strategy to be effective. For example, option A would require a company to focus on developing and introducing new or improved products, rather than differentiating their existing ones. Similarly, option B would require a company to focus on efficiency and cost-cutting measures. Option C would require a focus on pricing strategies and incentives to retain customers, whereas option D would require a focus on building strong relationships with customers to reduce their bargaining power.

A Broad Differentiation Strategy Works Best in Situations Where