A broad differentiation strategy generally produces the best results in situations where
A) buyer brand loyalty is low.
B) buyer needs and uses of the product are diverse.
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 buyer needs and uses of the product are diverse. This is because a broad approach allows the company to appeal to a wide range of customers with varying preferences and requirements. By offering a range of unique features and attributes, the company can differentiate itself from its competitors and establish a strong brand image. This can result in increased customer loyalty, as well as higher profit margins due to the higher prices that can be charged for unique products. Other factors such as price competition and product introductions are not as closely tied to the effectiveness of a broad differentiation strategy.

A Broad Differentiation Strategy Generally Produces the Best Results in Situations