As industry products become perceived as undifferentiated, the ability of firms to generate premium pricing ________.
A) increases
B) stabilizes
C) decreases
D) becomes more critical

Question

Quizplus · Accepted Answer

When industry products become perceived as undifferentiated, customers don't see any significant differences between products of different brands. As a result, they are less willing to pay a premium price for a product. This means that the ability of firms to generate premium pricing decreases.

As Industry Products Become Perceived as Undifferentiated, the Ability of Firms