Question

Differentiation strategies ____________.a. offer trivial improvements in quality, service, or performance features. b. often result in overcharging for the differentiating features. c. add so many frills and extra features that the end product exceeds the needs of buyers. d. often result in overspending on efforts to differentiate the company's product offering. e. strive to create value for customers.

Answer 1

Differentiation strategies focus on making products distinct and creating value for customers through physical characteristics, location, intangible aspects, and perception management.

Step-by-step explanation:

Differentiation strategies aim to make a company's products stand out from competitors'. These strategies can focus on various aspects, including physical features, the location from which the product is sold, intangible aspects like warranties or service promises, and managing the perceptions of the product through advertising. Options a to d in the original question suggest negative consequences of differentiation, such as trivial improvements or overspending. However, e states that differentiation strategies strive to create value for customers, which is typically the central goal of differentiation. By enhancing perceptions through advertising or providing unique services, companies can establish a brand preference even for products that are, in blind tests, virtually identical - such as ketchup or mayonnaise. The key is to differentiate their products in a way that resonates and adds value to the customer, thus justifying their choice and, occasionally, a higher price.

Answer 2

e. Strive to create value for customers.

Step-by-step explanation:

Differentiation strategies are strategies employed by companies or producers aimed at making a product distinct or unique from its competitors. As the name implies, it is one of the most useful marketing strategy in this modern time.

Differentiation strategy strive to create value for customers by making the product unique and entirely different from its rivals.

Some of the advantages of differentiation strategies are that it creates brand loyalty and also helps the company to function well in other areas which is different from price.