A firm successfully implementing a differentiation strategy would expect:
A) Customers to be sensitive to price increases
B) To charge premium prices
C) Customers to perceive the product as standard
D) To have high levels of power over suppliers

Question

Quizplus · Accepted Answer

A differentiation strategy aims to offer a unique product or service that customers perceive as superior and are willing to pay a premium for. Therefore, the firm implementing this strategy can expect to charge premium prices. Customers may not be as sensitive to price increases because they value the unique attributes of the product. The strategy does not aim to have a standard product, rather it strives to create a unique offering that sets it apart from competitors. The firm may not necessarily have high levels of power over suppliers, as it may require specialized inputs or partnerships to create the unique offering.

A Firm Successfully Implementing a Differentiation Strategy Would Expect