Differentiation allows a company to:
A) respond to demands of deep price demands from powerful buyers and still make money.
B) lower its cost structure.
C) charge a premium price for its good or service.
D) charge low prices and still make profits.
E) initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

Question

Quizplus · Accepted Answer

Differentiation allows a company to charge a premium price for its unique product or service, which in turn creates a perceived value for customers that justifies the higher price. This differentiation can be based on various factors such as quality, innovation, customization, or brand image. By creating a unique offering, a company can differentiate itself from competitors and create a competitive advantage.

Differentiation Allows a Company To