Asked by Samantha Valadez on May 28, 2024

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Many customers will walk right past a diner that serves coffee and go to Starbucks,where they pay more for a cup of java.For these customers,coffee is differentiated by:

A) style.
B) location.
C) quality.
D) type.

Differentiated

Products or services that are distinct from one another due to variation in design, quality, or other attributes, allowing them to appeal to different consumer preferences.

Starbucks

An American multinational chain of coffeehouses and roastery reserves known for its signature coffee drinks, teas, and baked goods, with a global presence.

Quality

The standard of something as measured against other similar things; a degree or level of excellence.

  • Clarify the impact of product differentiation on the pricing strategies and profitability levels of companies operating within monopolistic competition.
  • Illustrate how monopolistic competition affects consumer choice and market variety.
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JM
Jasmyne McGeeJun 01, 2024
Final Answer :
C
Explanation :
Quality is the differentiation factor for customers who are willing to pay more for a cup of coffee at Starbucks. They believe that the quality of the coffee is better at Starbucks than at a diner.