Which of the Following Is an Example of Product Differentiation

question 100

Multiple Choice

Which of the following is an example of product differentiation?

• A)Two shampoos differ only in their labels,but consumers pay $0.20 more for the label they recognize.
• B)Sugar can be made from sugar beets or sugar cane,and consumers cannot tell the difference.
• C)Consumers substitute SUVs for cars because SUVs accommodate more passengers.

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Definitions:

Utility Expense

Costs incurred by a business or individual for utilities such as electricity, water, and gas.

Cash

Cash refers to company-held currency and bank account balances that are readily available for use.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services that have been delivered but not yet paid for.

Accounts Payable

Money owed by a company to its creditors for goods and services that have been delivered but not yet paid for.