A broad differentiation strategy works best in situations where:
A) technological change is slow-paced and new or improved products are infrequent.
B) buyer needs and uses of the product are very similar.
C) buyers incur low costs in switching their purchases to rival brands.
D) buyers have a low degree of bargaining power and purchase the product frequently.
E) technological change is fast-paced and competition revolves around rapidly evolving product features.

Question

Quizplus · Accepted Answer

A broad differentiation strategy is most effective when there is a high degree of technological change and rapid evolution of product features. This allows for firms to differentiate themselves from competitors through continuous innovation and offering unique value propositions to customers. In such an environment, buyers may not have a significant degree of bargaining power and may be willing to pay a premium for differentiated products, leading to a potential for higher profit margins. Thus, option E is the best choice.

A Broad Differentiation Strategy Works Best in Situations Where