Question

Which of the following is NOT correct about the base of product differentiation? Group of answer choices Firms differentiate by focusing directly on the attributes of products or services such as product features, product complexity, timing of product introduction and location. Firms differentiate by establishing relationships between the firms and their customers. Examples are product customization, consumer marketing and product reputation Firms differentiate by establishing linkages within or between firms. Examples are linkages among functions within a firm, linkages with other firms, product mix, distribution channels and service and support. Firms differentiate by focusing on learning-curves to gain efficiency over time.

Answer 1

Answer: Firms differentiate by establishing linkages within or between firms. Examples are linkages among functions within a firm, linkages with other firms, product mix, distribution channels and service and support

Explanation:

The whole premise of Differentiation is that Firms make a different product from their competitors to maintain a Comparative Advantage.

Should Firms now start to collaborate with other firms by making linkages with them, their product mixes and distribution, the firms will have similar products that are NOT as differentiated if differentiated at all.

This option is therefore NOT a factor of Differentiation.