Product Differentiation That Makes the Product Better for Some Consumers

question 124

Multiple Choice

Product differentiation that makes the product better for some consumers and worse for others is

• A) always welfare decreasing.
• B) vertical differentiation.
• C) horizontal differentiation.
• D) never undertaken by firms.

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Definitions:

Reseller

A company or individual that purchases goods or services with the intention of selling them rather than consuming or using them.

FAB Statement

A FAB Statement highlights the Features, Advantages, and Benefits of a product or service, showcasing how it satisfies customer needs.

Customer Benefit Plan

A strategy designed to outline the advantages or improvements a customer will receive from a product or service.

Marketing Plan

A comprehensive document or blueprint that outlines a company's advertising and marketing efforts for the coming period.