Vidyalelo
Management · Q89

Management Accounting

Graduate and Post Graduate · Management · question 89

Q89

An ability of an organization, to offer its services or products that must be perceived by customers as unique and superior, in comparison to its competitors is called

A.
inelastic demand
B.
product differentiation
Answer
C.
cost leadership
D.
elastic demand

Answer: Option B

Solution

Answer: Option B
Solution:
An ability of an organization, to offer its services or products that must be perceived by customers as unique and superior, in comparison to its competitors is called product differentiation. Product differentiation (or just differentiation) is a marketing process of differentiating an offering (product or service) from others in the market, to make it more appealing to the target audience.