Final answer:
A broad differentiation strategy is not well suited when buyer needs and preferences are too diverse to be fully satisfied by a standardized product, as it may lead to unnecessary costs without significant benefits.
Step-by-step explanation:
In business strategy, a broad differentiation approach is typically not well-suited for market circumstances when buyer needs and preferences are not diverse, or when standardized products can adequately meet consumer demands. Therefore, the market circumstance in which a broad differentiation strategy is generally not well suited is 'a) When buyer needs and preferences are too diverse to be fully satisfied by a standardized product.' This scenario implies a need for specialized and variable products or services to cater to the different preferences, which contradicts the premise of a broad differentiation strategy.
A broad differentiation strategy involves adding distinct features to an organization's products or services to distinguish them from competitors'. However, if needs and preferences are too homogeneous, this strategy may result in unnecessary costs without corresponding benefits, as most consumers will be content with the basic standardized offerings. In such a market, a differentiation strategy may not only be less effective but can also become socially wasteful, as consumers might not be willing to pay extra for features that do not align with diverse needs.
Answer: a) When buyer needs and preferences are too diverse to be fully satisfied by a standardized product