BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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higher market share.
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decreased emphasis on competition based on price.
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higher profit margins and lower costs.
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significant economies of scale.
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Detailed explanation-1: -Companies gain a competitive advantage and market share through product differentiation. Product differentiation increases market competition and controls prices for consumers.
Detailed explanation-2: -Product differentiation is the characteristic or characteristics that make your product or service stand out to your target audience. It’s how you distinguish what you sell from what your competitors do, and it increases brand loyalty, sales, and growth.
Detailed explanation-3: -Product differentiation is the process used to distinguish one company’s goods and services from another company’s goods and services. Conversely, price discrimination is a strategy used to distinguish prices for the same goods and services.
Detailed explanation-4: -Why is product differentiation important? The goal of product differentiation is to create a competitive advantage or to make your product superior to alternatives on the market. In other words, you don’t just want to stand out from the competition, you want to stand above it.