A broad differentiation strategy generally produces the best results in situations where
A)buyer brand loyalty is low.
B)few rivals are following a similar differentiation approach.
C)new and improved products are introduced only infrequently.
D)most rivals are seeking to differentiate their products on most of the same features and attributes.
E)price competition is vigorous.

Question

Quizplus · Accepted Answer

A broad differentiation strategy works best when few rivals are following a similar differentiation approach, as this allows the company to stand out in the market and create a unique value proposition. If most rivals are seeking to differentiate their products on most of the same features and attributes, it can lead to a crowded market where it is difficult to differentiate and to compete solely on price. Therefore, a broad differentiation strategy is less effective in this situation. Other factors such as buyer brand loyalty, frequency of new product introductions, and price competition can impact the success of a differentiation strategy, but they are not the primary determinants of whether a broad or narrow differentiation approach is most effective.

A Broad Differentiation Strategy Generally Produces the Best Results in Situations