Question

A differentiation strategy allows a company to charge a(n) __________ price for its product, if it chooses to do so. a. premium b. exorbitant c. low d. average e. escalating

Answer 1

Answer:

A

Explanation:

A differentiation strategy entails making ones product different from that of other firms in the industry. This would enable the firm that has a differentiated product sell at a premium. The aim of this strategy is to have a competitive advantage

Advantages of a differentiation strategy

• products are unique. This reduces the competition the product faces with other products in the industry
• it increases brand loyalty