Question

The differentiation strategy can be effective in controlling the power of rivalry in an industry because customers will seek out the lowest cost product. because customers have no loyalty. because customers are loyal to brands that are differentiated in meaningful ways. because the differentiation strategy benefits from rivalry.

Answer 1

Answer: The correct answer is "customers are loyal to brands that are differentiated in meaningful ways".

Explanation: The differentiation strategy can be effective in controlling the poewer of rivalry in an industry because customers are loyal to brands that are differentiated in meaningful ways.

Once a company applies the product differentiation strategy over the competition, highlighting its own characteristic, such as good quality, durability, etc. the public will prefer it over that of the competition, because they will seek these characteristics.

Answer 2

Answer:

because customers are loyal to brands that are differentiated in meaningful ways.

Explanation:

The goal of a differentiation strategy is to distinguish your product from the competition. A good differentiation strategy should result in products that better fit the needs of their customers, and satisfies them in a way that is meaningful for them. By meaningful, I mean that the company is able to provide goods or services with certain characteristics and features that the customers consider important. Once this meaningful relationship is built, customers will develop a sense of loyalty towards the company that satisfies these important aspects of their needs.

For example, anyone can cook, even I can boil an egg. But some customers really enjoy the taste of food and they will be unconditionally loyal to the restaurants that provide that taste that satisfies them. That is why many people have a favorite restaurant that they go whenever they can.