Broad differentiation strategies are well-suited for market circumstances where:
A) there are many ways to differentiate the product or service that have value to buyers.
B) most buyers have the same needs and use the product in the same ways.
C) technological changes are slow-paced.
D) barriers to entry are high and suppliers have a low degree of bargaining power.
E) price competition is especially vigorous.

Question

Quizplus · Accepted Answer

Broad differentiation strategies are effective when a company can offer unique value to buyers through various ways of differentiating its products or services. This is particularly applicable in markets where customers value unique features, quality, or service and are willing to pay a premium price for it. Therefore, option A is the most suitable choice. Option B is incorrect because broad differentiation strategies are not appropriate when buyers have similar needs and use the product in the same ways. Option C is not suitable because slow technological changes are unlikely to drive differentiation-based pricing strategies. Option D is not the best fit as high barriers to entry and a low bargaining power of suppliers are factors that create a favorable competitive environment, but they do not play a significant role in the choice of this strategy. Option E is incorrect as differentiation strategies aim to differentiate products or services from competitors, shifting the focus away from price competition.

Broad Differentiation Strategies Are Well-Suited for Market Circumstances Where