Final answer:
Utilities with undifferentiated offerings have driven customers to seek differentiated services and better pricing, such as bundled cable, internet, and phone services. The evolution from monopolistic wired telephone services to a competitive landscape with cellular systems and bundled services highlights this transition.
Step-by-step explanation:
The question addresses the impact of utilities offering undifferentiated services and how this has influenced consumer behavior. Historically, companies like AT&T operated as monopolies in telephone services since the technology required for such services—an extensive network of wired connections—did not support multiple providers. However, as technology evolved and shifted to allow microwave and satellite transmission, the barriers for entries decreased, enabling multiple firms to offer similar services using the same infrastructure, thereby losing the aspect of being a utility. The advent of cellular phone systems further disrupted the traditional local service monopoly. In response to utilities offering undifferentiated service offerings, many customers have looked for alternatives that provide more customized or differentiated services, often at competitive prices, such as the bundling of cable, internet, and phone services offered by cable companies.