Question

Do you think the degree of product differentiation is worth the increased cost that such differentiation entails?

Answer 1

The given statement it is indeed complicated one but I think the cost of product differentiation is actually worth because that tastes of different customers are actually different and in this world of high competition it is important to sustain in the businesses as a result of which it is important to cater the needs of all the customers and then increase the customer base so that loyalty can be attained and you can sustain in the long run and only then you can continue your business smoothly and without the product differentiation what happens is that the customers might not be encouraged to buy your products and therefore you will lose out to your competition and that is the reason why product differentiation cost can be justified in the long run with the high customer base