Question

The use of a differentiation strategy would be expected to be LEAST effective in which of the following markets? a. Commodity goods b. Sporting goods c. Popular music d. Restaurants

Answer 1

Answer:

The correct answer is letter "A": Commodity goods.

Explanation:

A differentiation strategy is an approach adopted by companies to make the goods or services they offered unique compared to their competitors. Most firms tend to use price as the main key to the difference between their products and the competitors'.

Thus, the differentiation strategy is less likely to be applied in commodity goods because they are inherently unique such as oil, natural gas, precious metals or foreign currencies.