The firm successfully implementing a differentiation strategy would expect all of the following EXCEPT:
A) customers to be more sensitive to price increases.
B) to be able to charge a premium price for its product.
C) to be able to pass additional costs of supplies to the customer.
D) to be partially insulated from competitive rivalry.

Question

Quizplus · Accepted Answer

A successful implementation of a differentiation strategy means that the firm has been able to create perceived value among its customers, which should make them less price sensitive. As a result, the firm should not expect customers to be more sensitive to price increases. Rather, it should be able to charge a premium price for its product, be partially insulated from competitive rivalry, and perhaps even pass additional costs of supplies to the customer.

The Firm Successfully Implementing a Differentiation Strategy Would Expect All