A car dealership promotes cars by donating a percentage of each sale to local charities. A beverage company gives free branded towels to the first 7,000 attendees at a football game.

A. differentiated by perception

B. differentiated by service

C. differentiated by brand name/advertising

D. differentiated by quality/design

E. differentiated by location

The correct option is A) differentiated by perception

Explanation:

Differentiation communicates how a particular business is creating more value than her competitors which justifies charging higher rate for products and services.

One way to successfully create differentiation is by perception. the way customers see and identify with your brand is directly proportional to a strong value proposition, distinct features, quality service, strong brand identity and corporate social responsibility.

The car dealership by donating a percentage of each sales is seen as a responsive organization that identifies with the needs of the community.

The beverage company by giving towels to attendees in a football game met a need and sold their brand identity at the same time. they will be perceived as a superior beverage company that genuinely cares and identifies with people's area of interest.