Differentiating on a feature that buyers don't care about increases costs without increasing willingness to pay.

Question

Quizplus · Accepted Answer

This statement is true. If a company spends resources developing a feature that buyers don't care about, it won't increase the willingness to pay for the product. This means that the cost of developing that feature will be a sunk cost that doesn't provide any return on investment. In this scenario, differentiating based on that feature will only increase costs and won't generate any additional revenue.

Differentiating on a Feature That Buyers Don't Care About Increases