Question

what are the conditions where a product differentiation strategy is likely to be used? (note: there may be multiple answers to the question). group of answer choices when the profit is based on volume of goods sold. when there exists economies of scale. at the introductory stage of an industry's evolution. when there is a high willingness to pay in the market.

Answer 1

A product differentiation strategy is likely to be used when there is a high willingness to pay in the market, at the introductory stage of an industry's evolution, and when economies of scale exist.

Step-by-step explanation:

A product differentiation strategy is likely to be used under several conditions:

1. When there is a high willingness to pay in the market. This means that consumers are willing to pay a premium price for a product that offers unique features or benefits.
2. At the introductory stage of an industry's evolution. This is when new products are being introduced and there is a need to differentiate them from existing offerings in order to gain a competitive advantage.
3. When there exists economies of scale. This means that the cost of production decreases as the volume of goods produced increases, allowing the company to offer differentiated products at a competitive price.