Question

Which of the following is NOT true of a company that succeeds in differentiating its product offering from those of its rivals?

A. It can avoid having to compete on the basis of simply a low price.
B. It commands a premium price for its product.
C. It usually increases unit sales.
D. It gains buyer loyalty to its brand.
E. It attracts mainly price-conscious buyers.

Answer 1

A company that succeeds in differentiating its product offering from its rivals does not attract mainly price-conscious buyers.

Step-by-step explanation:

When a company succeeds in differentiating its product offering from its rivals, there are several true statements that apply. However, the option that is NOT true of such a company is E. It attracts mainly price-conscious buyers.

A successful differentiator is able to avoid competing solely on low price and can command a premium price for its product (B). It also usually increases unit sales (C) and gains buyer loyalty to its brand (D).

For example, Apple is a company that has successfully differentiated its products by focusing on innovation, design, and user experience. They do not attract mainly price-conscious buyers, but rather customers who value their unique features and brand.