A product differentiation strategy includes all of the following except:
A) It is based on differences in physical characteristics.
B) It is intended to get consumers to perceive a significant difference.
C) It can require channel member cooperation in the way the product is displayed, sold and serviced.
D) Prices to consumers may be higher.
E) Gross profit margins will increase through the life of the product.

Question

Quizplus · Accepted Answer

While a product differentiation strategy often leads to higher prices and may require channel member cooperation in displaying, selling, and servicing the product, there is no guarantee that gross profit margins will increase through the life of the product. This can depend on various factors such as competition, changing consumer preferences, and production costs.

A Product Differentiation Strategy Includes All of the Following Except