Asked by Paige Gratton on Jun 19, 2024
Verified
Which of the following is LEAST likely to occur during commoditization?
A) Competitive advantages come from cost leadership.
B) Customer loyalty and brand preferences increase.
C) Product differentiation becomes difficult.
D) Competition is mainly based on price.
Commoditization
The process by which products become indistinguishable from each other, leading to increased competition based on price.
Cost Leadership
A business strategy aimed at becoming the lowest cost producer in an industry, often resulting in competitive pricing.
Product Differentiation
The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.
- Identify the challenges and strategies related to commoditization and differentiation.
Verified Answer
JT
Jordyn ThomasJun 20, 2024
Final Answer :
B
Explanation :
During commoditization, products become homogenous and customers have less reason to be loyal to any particular brand. As a result, customer loyalty and brand preferences are less likely to increase. The other options (A, C, D) are all likely to occur during commoditization.
Learning Objectives
- Identify the challenges and strategies related to commoditization and differentiation.