This scenario demonstrates the impact of low product differentiation. Since Linda's customers are not as concerned about brands and are drawn to lower prices, it indicates that there is not a strong differentiation in the electrical supplies market, allowing for this competitive strategy to be effective.
Linda has established a new electrical supply shop. While there are competing shops, Linda’s strategy has been to use lesser-known brands for lower prices. So far, the strategy is working, since customers are not as concerned about brands as they would be with other products. This scenario demonstrates the impact of what?
(1 point)
Responses
product expansion
product expansion
business valuation
business valuation
related diversification
related diversification
low product differentiation
1 answer