The risks of the differentiation strategy include:
A) being "stuck in the middle."
B) other firms being able to match the low cost.
C) customers being willing to pay a premium for the features.
D) a decision that the differentiated features are not worth the price.

Question

Quizplus · Accepted Answer

The risk of a differentiation strategy is that customers may not see the value in paying a premium for the unique features and may choose a cheaper alternative. This could result in the company not being able to differentiate itself effectively and losing market share. Therefore, option D is the best choice as it addresses this risk.

The Risks of the Differentiation Strategy Include