What is the fundamental goal of product differentiation?
A) To increase profit margins
B) To set the company's products apart from competitive products in the market
C) To maximize market share
D) To more effectively market to industrial consumers
E) To more effectively market to certain demographic segments of the market

Question

Quizplus · Accepted Answer

The fundamental goal of product differentiation is to set the company's products apart from competitive products in the market, making them more desirable to consumers and allowing the company to charge a premium price. This helps the company gain a competitive advantage and increase profits.

Answer: E
 Product differentiation can also be used to more effectively market to certain demographic segments of the market by tailoring the product features and marketing messages to their specific needs and preferences. This can increase the product's appeal and sales to that particular group, leading to higher profits for the company.

What Is the Fundamental Goal of Product Differentiation