A differentiator has the advantage of: a. being able to respond to demands for deep price discounts from powerful buyers and still make money. b. selling on non-price factors, such as design or customer service. c. producing a large product variety without a large cost penalty. d. being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry. e. producing a basic offering that is relatively inexpensive to produce and deliver.

Question

Business

Jacey Wallace

3 July, 22:17

A differentiator has the advantage of: a. being able to respond to demands for deep price discounts from powerful buyers and still make money. b. selling on non-price factors, such as design or customer service. c. producing a large product variety without a large cost penalty. d. being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry. e. producing a basic offering that is relatively inexpensive to produce and deliver.

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Answers (1)

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Soren Maxwell · Answer 1

The correct answer is letter "B": selling on non-price factors, such as design or customer service.

Explanation:

Product differentiation is a marketing tool used by companies to distinguish their products or services from the competition. Generally speaking, the more a product is distinguished and thus made exclusive, the higher the company's profit margin. The most common form of product differentiation includes emphasizing the quality of the goods or the customer service offered in contrast to the products in competition.