when a company following a differentiation strategy ensures that the higher price it charges for its higher quality is not priced too far about the price of competition, the company is using the process of

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01-07-2021
Business

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when a company following a differentiation strategy ensures that the higher price it charges for its higher quality is not priced too far about the price of competition, the company is using the process of

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Jaquelinefvridn Jaquelinefvridn · Answer 1 · 2021-07-02T14:52:30-04:00

Answer:

cost proximity.

Explanation:

Cost proximity is a strategy that some organizations can follow to conquer the market. The strategy consists of offering differentiated products with more added benefits than competitors that use a mass product strategy, but without the price of their differentiated product being much higher than those of competitors. With this, the company is able to reach more consumers who perceive greater added benefit from purchasing a differentiated product at a price not much higher than a standard product.

Companies that use this strategy use a configuration of their value chain that allows for gains of scale that allow them to pass on a better price to the consumer without loss of profitability

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