Differentiation allows a company to: a. respond to demands of deep price demands from powerful buyers and still make money. b. lower its cost structure. c. charge a premium price for its good or service, should it choose to do so. d. charge low prices and still make profits. e. initiate a price war in order to grow volume and drive its weaker rivals out of the industry.
C) charge a premium price for its good or service, should it choose to do so.
Explanation:
Marketing strategies are divided into two main groups:
differentiation strategies: consists of providing a differentiated product or service to our target market. Differentiation allows the company to produce a higher quality product and also charge a higher price for it, if the company chooses to do so. Sometimes a differentiation strategy can be based on providing differentiated products at similar prices than our competitors.
low cost strategies: consists of providing similar or standard products at a lower price than its competitors.
