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A broad differentiation strategy works best in situations where:

A. technological change is slow-paced and new or improved products are infrequent.
B. buyer needs and uses of the product are very similar.
C. buyers incur low costs in switching their purchases to rival brands.
D. buyers have a low degree of bargaining power and purchase the product frequently.
E. technological change is fast-paced and competition revolves around rapidly evolving product features.

1 Answer

1 vote

Final Answer:

A broad differentiation strategy works best in situations where E. technological change is fast-paced and competition revolves around rapidly evolving product features.

Step-by-step explanation:

In a fast-paced technological environment, companies need to constantly innovate and differentiate their products to stay ahead of the competition. This requires a broad differentiation strategy that focuses on creating unique and innovative features to meet the rapidly evolving customer needs. With fast-paced technological change, companies that can differentiate their products effectively are more likely to succeed in capturing market share and maintaining a competitive edge.

Furthermore, in such an environment, buyer needs and uses of the product are likely to be diverse, requiring companies to offer a wide range of differentiated products to cater to various customer segments. This aligns with the broad differentiation strategy, which emphasizes offering unique features and attributes that appeal to a wide range of customers.

Moreover, in a fast-paced technological landscape, the bargaining power of buyers may be higher as they have access to a variety of innovative products from different competitors. Therefore, a broad differentiation strategy allows companies to create products with unique features that can justify premium pricing, thereby mitigating the impact of buyer bargaining power.

So correc option is option.e

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