A broad differentiation strategy generally produces the best results in situations where:
A) buyer brand loyalty is low.
B) few rival firms are following a similar differentiation approach.
C) new and improved products are introduced only infrequently.
D) most rivals are pursuing a differentiation strategy and are seeking to differentiate their products on most of the same features and attributes.
E) price competition is vigorous.

Question

Quizplus · Accepted Answer

A broad differentiation strategy is most effective when few rival firms are following a similar approach because it allows the firm to stand out in the market and capture a larger market share. When many rivals are pursuing differentiation strategies, it becomes difficult to stand out and compete on unique features and attributes. Therefore, option B is the best choice.

A Broad Differentiation Strategy Generally Produces the Best Results in Situations