Question

Which of the following environmental conditions is most conducive to a firm pursuing a product differentiation strategy?

A. Customers with varied needs, not many ways to change products

B. Customers with varied needs, many ways to change products

C. Customers with similar needs, many ways to change products

D. Customers with similar needs, not many ways to change products

Answer 1

A firm pursuing a product differentiation strategy benefits from customers with varied needs and many ways to change products.

Step-by-step explanation:

A firm pursuing a product differentiation strategy is most likely to benefit from customers with varied needs, many ways to change products. This is because a product differentiation strategy aims to create unique, distinctive products that cater to the diverse preferences of customers. When customers have varied needs, there are more opportunities for a firm to differentiate its products and stand out from competitors.