The pitfalls of a differentiation strategy include
A) trying to differentiate on the basis of attributes or features that are easily copied.
B) choosing to differentiate on the basis of attributes that buyers do not perceive as valuable or worth paying for.
C) trying to charge too high a price premium for the differentiating features.
D) being timid and not striving to open up meaningful gaps in quality or service or performance features relative to the products of rivals.
E) All of these.

Question

Quizplus · Accepted Answer

All of these pitfalls are possible when pursuing a differentiation strategy. It is important to differentiate on attributes that are difficult to copy, are perceived as valuable by buyers, and to price the differentiating features appropriately. Additionally, a company should strive to create significant gaps in quality, service, or performance features compared to competitors, rather than being timid in their differentiation efforts.

The Pitfalls of a Differentiation Strategy Include