A broad differentiation strategy generally produces the best results in situations where
A)buyer brand loyalty is low.
B)few rival firms are following a similar differentiation approach.
C)new and improved products are introduced only infrequently.
D)most rivals are pursuing a differentiation strategy and are seeking to differentiate their products on most of the same features and attributes.
E)perceived value of a product is not of great importance.

Question

Quizplus · Accepted Answer

A broad differentiation strategy works best when there are few rival firms following a similar approach. This is because a broad differentiation strategy seeks to differentiate the product on many features and attributes, and if there are many rival firms doing the same, it could result in a saturation of the market, where no one is able to stand out. However, if there are few rival firms following this approach, it could lead to a unique and distinctive product standing out in the market, leading to a competitive advantage.

A Broad Differentiation Strategy Generally Produces the Best Results in Situations