Asked by Frasier Williamson on May 11, 2024
Verified
A chewing gum manufacturer adds a jalapeño-flavored bubble gum to its product mix. This is an example of horizontal differentiation.
Horizontal Differentiation
A strategy where products are made different from those of competitors on aspects other than price, such as quality or features, while aimed at satisfying the same basic need.
Product Mix
The variety of products a company offers for sale to meet market demand and enhance profitability.
- Acquire insight into the concepts of vertical and horizontal product differentiation and their repercussions on consumer choices.
Verified Answer
TD
TIRTH DESAIMay 14, 2024
Final Answer :
True
Explanation :
Horizontal differentiation refers to the process of distinguishing a product based on attributes other than price, such as flavor, color, or design, which is exactly what the manufacturer is doing by adding a jalapeño-flavored bubble gum.
Learning Objectives
- Acquire insight into the concepts of vertical and horizontal product differentiation and their repercussions on consumer choices.
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