Competitive advantage with product differentiation occurs when a company
A) creates competitive advantage by grouping customers on the basis of important differences in their needs.
B) helps firms keep costs to a minimum.
C) creates, makes, and sells a product in a way that better satisfies customer needs than its rivals.
D) is focused on corporate-level strategy.
E) allows its managers to ignore costs.

Question

Quizplus · Accepted Answer

Product differentiation occurs when a company creates, makes, and sells a product in a way that better satisfies customer needs than its rivals. This leads to a competitive advantage as customers are more likely to choose the product that best meets their needs.

Competitive Advantage with Product Differentiation Occurs When a Company