Product differentiation can be of value to a firm because
A)no other firm will be able to meet the same consumer need.
B)the product will always be patented.
C)some consumers with certain tastes will likely buy the product.
D)money is often spent to develop a differentiated product.
E)product differentiation lowers product prices for consumers.

Question

Quizplus · Accepted Answer

Product differentiation allows a firm to cater to specific consumer tastes and preferences, making it likely that consumers with those particular tastes will purchase the product. This strategy does not guarantee exclusivity (A), patent protection (B), necessarily involve significant development costs (D), or lead to lower prices for consumers (E).

Product Differentiation Can Be of Value to a Firm Because