Sources of product differentiation


Task: Suggest whether each of the following statements is true or false and illustrate why.

A. Sources of product differentiation include only physical differences, not merely perceived differences.

B. Price competition tends to be most vigorous for products with many actual or perceived differences.

C. The availability of good substitutes decreases the degree of competition.

D. Competition tends to be less vigorous when buyers and sellers have easy access to detailed price/product performance information.

E. The availability of good complements increases the degree of competition.

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Strategic Management: Sources of product differentiation
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