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Which of the following is not one of the hazards of pursuing a differentiation strategy?

a) Charging too high a price premium for the differentiating features

b) Over-differentiating so that the features and attributes incorporated exceed buyer needs and requirements

c) Striving to create strong brand loyalty rather than being content with weak brand loyalty (which usually means lower costs and higher profitability)

d) Using features or attributes that rivals can easily copy

User CptanPanic
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Final answer:

The option that is not a hazard of pursuing a differentiation strategy is option (c), striving to create strong brand loyalty. It's a positive goal, whereas the other listed options can indeed pose risks to successfully differentiating a product in the market.

Step-by-step explanation:

In answering the question of which option is not one of the hazards of pursuing a differentiation strategy, it's important to identify actions that could be misguided or detrimental when trying to make a product or service stand out in the marketplace.

Option (a), charging too high a price premium for differentiating features, is indeed a hazard. If the premium is not justifiable by the perceived value, customers might turn to cheaper alternatives.

Option (b), over-differentiating such that the product's features exceed buyer needs, is also a hazard. Over-complicating a product can deter customers who might seek simpler solutions.

Option (d), differentiating with features that rivals can easily copy, represents a risk. Unique features that can be quickly replicated will not sustain a competitive advantage.

Option (c), however, is not a hazard. Striving to create strong brand loyalty is a positive goal for most businesses as it helps to maintain a competitive edge, increase customer retention, and possibly even command higher prices due to the brand's value.

User TarekB
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