Broad differentiation strategies are well-suited for market circumstances where
A) there are many ways to differentiate the product or service and many buyers perceive these differences as having value.
B) most buyers have the same needs and use the product in the same ways.
C) buyers are susceptible to clever advertising.
D) barriers to entry are high and suppliers have a low degree of bargaining power.
E) price competition is especially vigorous.

Question

Quizplus · Accepted Answer

Broad differentiation strategies are most effective when there are many ways to differentiate the product or service and many buyers perceive these differences as having value. This helps the company to command a premium price for its unique offering, which in turn can help to increase profits and market share. This strategy is not well-suited for markets where most buyers have the same needs and use the product in the same ways or where price competition is especially vigorous, as it may be difficult to justify the higher price that comes with differentiation.

Broad Differentiation Strategies Are Well-Suited for Market Circumstances Where