179k views
3 votes
Home Smart Inc. is a chain of supermarkets that sells its products at higher prices than its competitors. Yet, the supermarket chain has a large customer base due to its wide product portfolio and superior customer service. Which of the following generic business strategies has Home Smart adopted in this scenario? a. market penetration b. cost-leadership c. differentiation product d. diversification

User Kars
by
5.7k points

1 Answer

4 votes

Answer:

The answer is: C) Product differentiation

Step-by-step explanation:

Marketing strategy that distinguishes the company´s products or services from the competition. Highlights the benefits of the company´s offerings while distinguishing them from the competition.

Home Smart offers higher quality customer service and a broader portfolio of products, even though they are more expensive.

A product differentiation strategy usually focuses on:

  • price: either by selling at the lowest possible price or selling at a high for exclusivity or luxury
  • performance and reliability: offer the best possible product and/or the most reliable product
  • location and service: focuses on community ties (being local companies) and offer high quality service

User VoxPelli
by
6.3k points