Question

Imitability of a differentiated product refers to:

a) How quickly competitors can replicate it
b) The product's popularity among consumers
c) The product's uniqueness in the market
d) The cost of producing the product

Answer 1

Imitability of a differentiated product refers to how quickly competitors can replicate it.

Step-by-step explanation:

Imitability of a differentiated product refers to how quickly competitors can replicate it. In a competitive market, if a differentiated product can be easily and quickly copied by competitors, then the firm loses its uniqueness and may struggle to maintain a competitive advantage. For example, if a company introduces a new smartphone with unique features, but competitors are able to replicate those features and release similar phones within a short time frame, then the imitability of the product is high.