Answer to Question #262633 in Management for Paia

Question

Although cost leadership is perhaps less relevant for firms that pursue product differentiation, costs are not totally relevant. What advice about costs would you give a firm pursuing a product differentiation strategy?

Answer 1

The firm has to focus on a particular product or service that meets specific customer needs and decide on a suitable packaging and pricing method based on the target buyers economic status and also ensure its product price Is lower compared to competitors to attract more costomers.