Which of the following phenomena is not explained by the existence of product differentiation?
A)The need for consumer information services
B)Intraindustry trade
C)Price discrimination
D)Advertising
E)Brand loyalty

Question

Quizplus · Accepted Answer

Price discrimination is not explained by product differentiation. It refers to the strategy where a company sells the same product to different customers at different prices, not based on differences in the product itself but on other factors such as willingness to pay, market segment, or purchase location. Product differentiation, on the other hand, involves making a product distinct in some way from its competitors, which can justify different prices due to the perceived differences in the products themselves, not the strategy of charging different prices for the same product to different customers.

Which of the Following Phenomena Is Not Explained by the Existence