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12 June, 03:14

Which of the following is not a potential pitfall of a differentiation strategy?

a. Perceptions of differentiation may vary between buyers and sellers Uniqueness that is not valuable

b. All rivals share a common input or raw material

c. The price premium is too high

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Answers (1)
  1. 12 June, 05:20
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    Answer: Option B

    Explanation: Differentiation strategy refers to the strategy in which a firm tries to differentiate itself from the market by developing a unique product that has never been introduced before. It is done with the objective of gaining competitive advantage by starting one's own market base.

    However, this has a major pitfall as the product that the consumers might not find that product valuable as much or the production cost would be too high that it lead to premium pricing.

    Hence from the above we can conclude that the correct option is B.
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Home » Business » Which of the following is not a potential pitfall of a differentiation strategy? a. Perceptions of differentiation may vary between buyers and sellers Uniqueness that is not valuable b. All rivals share a common input or raw material c.
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