Final answer:
The competitive strategy adopted by the homebuilder is differentiation, focusing on creating unique products and services that stand out from competitors. This includes special design options, top-quality materials, and exceptional customer service. The correct answer is option b. Differentiation
Step-by-step explanation:
The competitive strategy adopted by the homebuilder who dominates a market by offering attractive options, higher quality, and value-added services is differentiation. This strategy involves making a company's products or services different from and more attractive than those of their competitors. To achieve this, the homebuilder may focus on distinctive physical aspects of the homes, superior locations, intangible benefits like customer service, and positive perceptions through a well-respected brand name. Differentiation is characterized by differentiated products, which are unique in comparison to competitors' offerings, ensuring that consumers perceive the homebuilder's products as distinct and preferable.
Product differentiation is a crucial aspect of the differentiation strategy and involves any action that makes consumers think a product is different from its competitors' offerings. This could include design improvements, technological advancements, customer service enhancements, and more. In the context of homebuilding, this might translate to custom design options, smart home technology, or a dedicated after-sales service team. This approach aligns with the concept that a differentiated product stands out due to its various distinctive features and perceived value.