The keys to maintaining a broad differentiation strategy are:
A) to stress constant innovation to stay ahead of imitative rivals and to concentrate on a few differentiating features.
B) to charge a premium price that more than covers the extra costs of differentiating features and to convince customers to be brand loyal.
C) to out-innovate and out-advertise rivals.
D) to emphasize personalized customer service and to add as many differentiating features as possible.
E) to keep prices close to the average of all rivals and to spend heavily on new product R&D.

Question

Quizplus · Accepted Answer

Maintaining a broad differentiation strategy requires constant innovation to stay ahead of imitative competitors, and a focused approach to a few key differentiating features. This approach allows the company to maintain a premium price for its product, while still delivering a unique value proposition to its customers. Out-innovating and out-advertising rivals, emphasizing personalized customer service, and adding as many differentiating features as possible are all important strategies, but they do not necessarily guarantee success in maintaining a broad differentiation strategy. Keeping prices close to the average of all rivals and spending heavily on new product R&D may not be sustainable or profitable in the long-term.

The Keys to Maintaining a Broad Differentiation Strategy Are