A firm successfully implementing a differentiation strategy would expect:
A) customers to be sensitive to price increases.
B) to charge premium prices.
C) customers to perceive the product as standard.
D) to automatically have high levels of power over suppliers.

Question

Quizplus · Accepted Answer

A differentiation strategy involves offering unique and valued features which allows a firm to charge premium prices to customers who are willing to pay for those features. Customers are less likely to be sensitive to price increases if they perceive the product as offering something unique and valuable. A differentiation strategy also does not necessarily mean the product is considered standard by customers, as it is differentiated from competitors. High levels of power over suppliers are not automatic with a differentiation strategy, as it depends on the specifics of the industry and the relationships with suppliers.

A Firm Successfully Implementing a Differentiation Strategy Would Expect