In Which of the Following Market Circumstances Is a Broad

question 6

Multiple Choice

In which of the following market circumstances is a broad differentiation strategy generally NOT well-suited?

• A) When buyer needs and preferences are too diverse to be fully satisfied by a standardized product
• B) When few rivals are pursuing a similar differentiation approach
• C) When the products of rivals are weakly differentiated
• D) When there are many ways to differentiate a product or a service and many buyers perceive these differences valuable
• E) When technological change is fast-paced and competition revolves around rapidly evolving product features

---

Definitions:

Profit-maximizing

A strategy in business where the main goal is to increase profits to the highest possible level given the constraints of the market.

Elastic Segment

A portion of the demand curve where the quantity demanded is highly sensitive to changes in price.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity of it that consumers are willing to purchase at various prices.

Total Revenue

The total income received by a company from its sales of goods or services before any expenses are subtracted.