The maker of Hanes pantyhose attempts to set its product apart from the competition. As a result, the company obtained limited control over the price of its product. Achieving price control in this manner is known as
A) advertising.
B) distributional efficiency.
C) low-cost production.
D) niche marketing.
E) product differentiation.

Question

Quizplus · Accepted Answer

The scenario describes how the maker of Hanes pantyhose is attempting to differentiate its product from its competitors. By setting itself apart, the company is able to obtain limited control over the price of its product. This is an example of product differentiation, which allows a company to charge a premium price for its unique product.

The Maker of Hanes Pantyhose Attempts to Set Its Product