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) buyers needs and uses of the product or service are diverse.

Question

Quizplus · Accepted Answer

A broad differentiation strategy is best suited for situations where buyer needs and uses of the product or service are diverse. This allows the firm to differentiate its product or service in multiple ways to cater to different customer segments. A broad differentiation strategy would not work well in situations where buyer needs and uses are very similar, as there would be little room for differentiation. Slow-paced technological change and infrequent new product introductions would not necessarily require a broad differentiation strategy. Low switching costs and high buyer bargaining power could make differentiation difficult and erode any potential pricing premiums.

A Broad Differentiation Strategy Works Best in Situations Where