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
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
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
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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