In which of the following situations does a differentiation strategy make the most sense?
A) The industry is fragmented into different customer groups, each of which has different needs.
B) Customer needs are primarily satisfied by the price of the product.
C) There is a lot of technological change.
D) There are low barriers to entry and exit.
E) The industry is in the maturity stage of the life cycle.

Question

Quizplus · Accepted Answer

A differentiation strategy makes the most sense when the industry is fragmented into different customer groups, each of which has different needs. This strategy allows the company to target specific customer segments with unique offerings that meet the needs of their individual market segments.

In Which of the Following Situations Does a Differentiation Strategy