A focused differentiator has the advantage of: A. being able to respond to demands for deep price discounts. B. producing a large product variety without a large cost penalty. C. producing a basic offering that is relatively inexpensive to produce and deliver. D. selling on non-price factors, such as design or customer service. E. being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

Question

Business

Elle Murray

20 April, 17:25

A focused differentiator has the advantage of: A. being able to respond to demands for deep price discounts. B. producing a large product variety without a large cost penalty. C. producing a basic offering that is relatively inexpensive to produce and deliver. D. selling on non-price factors, such as design or customer service. E. being able to initiate a price war in order to grow volume and drive its weaker rivals out of the industry.

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Alyssa · Answer 1

D. Selling on non-price factors, such as design or customer service

Explanation:

One of the main goals of a Focused differentiator strategy in business is to is to secure a competitive advantage over competitors by offering products that appeal to specific non-price and unique preferences of customers.

The strategy is to go for products that will appeal to a well-defined group of buyers. This strategy is the opposite of the Broad Differentiation strategy that aims at different or multiple market segments or multiple buyer groups for a product.

A good example is the development of a particular high-end product car manufacture line which is specifically targeted at high-end citizens in a society who will go for them despite their costs just because of their premium looks, additional features (off-road capabilities, 0-60 miles in 4 seconds and leather trimmings) among others. This is a focused differentiator