GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Costs are often increased
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Brand loyalty is reduced
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It can lower quality
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None of the above
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Detailed explanation-1: -It can strain resources. Pursuing a differentiation strategy means a lot of time, energy, and resources will be spent to develop a product that sets itself apart from the competition. This can put a burden on research and development teams, product manufacturers, and even your profit margins.
Detailed explanation-2: -You can typically sell a differentiated product for a higher price because people will pay for durability, appearance, and customer service. They will also pay more for packaging they like or an experience that excites.
Detailed explanation-3: -It can lower price, thus squeezing its competitor’s margins and profits. It can invest more in research and development, allowing it to improve the performance of its product.
Detailed explanation-4: -increased costs on advertising to reach each market segment; customers may respond differently; limits in your business growth that may occur when targeting small groups of customers; More items