The term _____ best explains why most automobile manufacturers produce similar products yet consumers have preferences for specific brands.

Question

Quizplus · Accepted Answer

Product differentiation refers to the process by which a company distinguishes its products from those of competitors in the eyes of target customers. This helps explain why consumers may have brand preferences even though many automobile manufacturers produce similar products. Market segmentation (A) and product segmentation (E) also play a role in understanding consumer preferences, but do not directly explain why manufacturers produce similar products. Market formatting (B) and strategic marketing (D) are not commonly used terms in marketing and are not relevant to this question.

The Term _____ Best Explains Why Most Automobile Manufacturers Produce