BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Commodity products are based on quality
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Commodity products are priced higher than specialty products
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Commodity products are not easily differentiated
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Commodity products have very limited competition
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Detailed explanation-1: -Differentiation is critical for commodities to achieve any marketing advantage. With few exceptions, such as monopolies like the cable companies and one-of-a-kind products like Polaroid was years ago, differentiation is critical to creating a preference or commanding a premium price.
Detailed explanation-2: -Commodities and differentiated products are the two ends of the product spectrum. A product is a commodity when all units of production are identical, regardless of who produces them. However, to be a differentiated product, a company’s product is different than those of its competitors.
Detailed explanation-3: -Cars, smartphones, computers, shoes, and perhaps most notably, bottled water are just a few common examples of differentiated products. Companies can also differentiate products by price.
Detailed explanation-4: -Hence, most commodities can be characterized by the following qualities: natural resources needed by most nations or regions; large price fluctuations; economical sources in limited geographic regions; and uniformity of the product.