Firms that have well-known brands that are highly differentiated have little ability to charge higher prices than those charged by competitors.

Question

Business

Franco Meyer

6 April, 13:13

Firms that have well-known brands that are highly differentiated have little ability to charge higher prices than those charged by competitors.

+2

Answers (1)

Know the Answer?

Tamara Jennings · Answer 1

The given statement " Firms that have well-known brands that are highly differentiated have little ability to charge higher prices than those charged by competitors " is False

Explanation:

Product differentiation in economics and in marketing, is the mechanism by which a product or service is differentiated from others, making it more attractive to a given market. That means distinguishing it from the products of competitors and the own products of a company.

Superior value, which means the capacity to charge higher costs, is usually given to highly differentiated products.

For example, Selection of different brands of mineral water. The customer knows the real difference, but nevertheless prefers one.

The customer chooses the one nearest to them as he / she is hostile to them. Two Ice Creame stalls selling similar ice creams.