A company using the differentiation strategy relies upon the ______ to maintain an advantage over its competitors. A.real or perceived difference B.the real difference C.the perceived difference D.the naturally occurring difference E.none of these

Answered: A company using the differentiation…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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A company using the differentiation strategy relies upon the ______ to maintain an advantage over its competitors.

	A.	real or perceived difference
	B.	the real difference
	C.	the perceived difference
	D.	the naturally occurring difference
	E.	none of these

Expert Solution

Step 1

The correct option is c, that is the perceived difference.

The companies selling differentiated products aim at differentiating products based on the customers' perception. It means there might not be any actual difference present in two products but customers perceives the difference based on its color, price, fragrance and other factors. It provides the organization a value preposition as it shows the product's qualities, which are different from that of competitors. Thus, if customers perceives that product is different than other then they may even pay higher for it.

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