Successful broad differentiation allows a firm to
A)be the industry's best-cost provider.
B)set the industry ceiling on price.
C)avoid being dragged into a price war with industry rivals and not be overly concerned about whether entry barriers into the industry are high or low.
D)command a premium price for its product, and/or increase unit sales, and/or gain buyer loyalty to its brand.
E)take sales and market share away from rivals by undercutting them on price.

Question

Quizplus · Accepted Answer

Successful broad differentiation allows a firm to command a premium price for its product or service, increase unit sales, and gain buyer loyalty to its brand. By offering something unique and desirable, a firm can create a perceived value in the minds of customers that justifies higher prices. This helps the firm to avoid price competition and gain sustainable competitive advantage.

Successful Broad Differentiation Allows a Firm to