Question

Natalie purchases Open Source bottled water from France because it is derived from natural springs and the store brand doesn’t say where it comes from. What is influencing Natalie’s purchase decision?
A. a trade surplus

B. economies of scale

C. overlapping demand

D. product differentiation

Answer 1

Answer:

Option D Product Differenciation

Explanation:

The reason is that the customer is not demanding the essential ingredients in the water, water taste, etc. The customer is demanding waters of spring that is perceived and is of good quality. This means that the customers knows from where it comes from and doesn't requires any need for telling them from where it comes from. So the customers who buy differentiated products knows well about the product.