Question

Because controlling the production of many different foods within the same manufacturing unit proved to be difficult and resulted in increasing costs, a packaged food manufacturer created separate product divisions that make frozen vegetables, frozen entrees, canned soups, and baked goods. This design decision will ________ within the organization.

Answer 1

The correct answer is letter "C": increase horizontal differentiation.

Step-by-step explanation:

In the corporate world, product differentiation takes place when firms segment their market and tend to provide specialized goods to certain sectors. However, producers must organize their manufacturing units in a way that each production process can be easily recognized.

Horizontal differentiation refers to segregating the production of goods that cannot be compared among them. This contrasts vertical differentiation where products manufacturing are segregated but they can be measured and compared in quality terms.

Answer 2

increase horizontal differentiation

Step-by-step explanation:

Product differentiation is a competitive strategy that aims to make the consumer perceive the good or service offered by a company differently from those of the competition.

Product differentiation can be based mainly on various attributes such as quality, color, size, after-sales service, specialized attention, location, brand recognition or luxury. Thus, any attribute that makes a good or service perceive differently is considered product differentiation.

It should be noted that differentiation also has a subjective element. This, since consumers can perceive that a certain brand is different from another based not on the comparison of objective characteristics, but on the idea that they have made of the company and its image.

Horizontal differentiation

Refers to differentiation based on variety. That is, in the various attributes that the product or service may have. We refer, for example, to color, texture, size, location, etc.

Consumers will not necessarily agree on which product has more value than another. Thus, it all depends on your own preferences.