Which of the Following Examples Uses a Focused Differentiation Strategy

question 85

Multiple Choice

Which of the following examples uses a focused differentiation strategy?

• A) a tennis pro shop that sells low-quality racquets priced at 150 dollars per racquet
• B) a coffee shop that offers mediocre lattes at a price of five dollars for a small latte
• C) a hotel chain that offers high-quality furnishings and service with room rates of under 75 dollars per night
• D) a cosmetics brand that offers superior skin lotion for sensitive skin priced at 100 dollars per bottle

---

Definitions:

Service Quality

The degree to which a service meets the expectations of the customer, influencing customer satisfaction and loyalty.

Customer Contact Audit

A systematic review of all the points at which a business interacts with its customers, aiming to improve service quality and customer satisfaction.

Flowchart

A diagram that displays a process or system using symbols and arrows to represent steps and the flow direction, respectively.

Relationship Customers

Customers with whom a business has established an ongoing relationship, characterized by repeated interactions and loyalty.