How do firms in the same industry differentiate their products? The following scenario describes...

Question:

How do firms in the same industry differentiate their products?

The following scenario describes a monopolistically competitive market. Decide which form or forms of product differentiation the firm uses to distinguish its products from those of its rivals. Choose all that apply.

Most mountain bikes come equipped with either two 26-inch wheels or two 29-inch wheel. Tour Bicycles offers special model with one 29-inch wheel on the front and a 26-inch wheel on the back. Tour claims the small rear wheel facilitates faster acceleration, while the bigger front wheel allows the riders to clear obstacles more easily. Tour also uses lightweight components made from material that is stronger and more durable than the material used by some of its rivals.

Tour differentiates its mountain bike on the basis of;

a) Quality

b) Location

c) Type

Product Differentiation:

Product differentiation is any method or strategy a company uses to set its product or service apart from its competitors. This can be performed through changes in the actual product or even things like marketing strategy and branding.

Answer and Explanation: 1

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Tour differentiates its mountain bike through a) Quality and c) Type. They differentiate from their competition through quality by using stronger,...

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Differentiated Products: Definition & Examples

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Chapter 6 / Lesson 15
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Learn about product differentiation and how it is used in marketing. See product differentiation examples based on price, quality, location, and other factors.


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