Differentiation allows a company to: a. respond to demands of deep price demands from powerful buyers and still make money. b. lower its cost structure. c. charge a premium price for its good or service, should it choose to do so. d. charge low prices and still make profits. e. initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

Question

Kennedy Dunn

Business

18 October, 19:00

Differentiation allows a company to: a. respond to demands of deep price demands from powerful buyers and still make money. b. lower its cost structure. c. charge a premium price for its good or service, should it choose to do so. d. charge low prices and still make profits. e. initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

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Answers (1)

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Jacoby Moss · Answer 1

C) charge a premium price for its good or service, should it choose to do so.

Explanation:

Marketing strategies are divided into two main groups:

differentiation strategies: consists of providing a differentiated product or service to our target market. Differentiation allows the company to produce a higher quality product and also charge a higher price for it, if the company chooses to do so. Sometimes a differentiation strategy can be based on providing differentiated products at similar prices than our competitors. low cost strategies: consists of providing similar or standard products at a lower price than its competitors.