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James Co produces and distributes auto parts. Its strategy is based on the quality of its...

Question:

James Co produces and distributes auto parts. Its strategy is based on the quality of its processes and materials, which are seen as being superior to those products made by its competitors. Which of the following is true about James Co?s strategy?

a) James Co follows a product differentiation strategy

b) James Co follows a price differentiation strategy

c) James Co is a cost leader and follows a target-profit approach in its pricing

d) the high-quality process allows James Co to execute a cost leadership strategy

Answer and Explanation:

The answer is a) James Co follows a product differentiation strategy

  • This is because its customers sees its product as having greater quality and thus differentiates the product from competitors.

Learn more about this topic:

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Product Differentiation in Marketing: Examples, Strategies & Definition

from Introduction to Business: Homework Help Resource

Chapter 15 / Lesson 15
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