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James Co produces and distributes auto parts. Its strategy is based on the quality of its...

Question:

James Co produces and distributes auto parts. Its strategy is based on the quality of its processes and materials, which are seen as being superior to those products made by its competitors. Which of the following is true about James Co?s strategy?

a) James Co follows a product differentiation strategy

b) James Co follows a price differentiation strategy

c) James Co is a cost leader and follows a target-profit approach in its pricing

d) the high-quality process allows James Co to execute a cost leadership strategy

What Is Product Differentiation:

In a general business strategy context, Product Differentiation is the process of making a product or service seem different from other available ones on the market to make it more attractive to a particular target customer.

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Product Differentiation in Marketing: Examples, Strategies & Definition

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Chapter 15 / Lesson 15
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In marketing, product differentiation is a strategy used to make a business' products unique and more appealing compared to competitors' products. Learn the definition and strategies for product differentiation in marketing, explore examples of how to use it, and discover how to recognize ways product differentiation can help a business sell more products.


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