High product differentiation is generally accompanied by __________.
A) higher market share
B) higher profit margins and lower costs
C) decreased emphasis on competition based on price
D) significant economies of scale

Question

Quizplus · Accepted Answer

Differentiation provides protection against rivalry since brand loyalty lowers customer sensitivity to price and raises customer switching costs. By increasing company margins, differentiation also avoids the need for a low-cost position.

High Product Differentiation Is Generally Accompanied by __________