PITFALLS OF ADIFFERENTIATION STRATEGY

PITFALLS OF ADIFFERENTIATION STRATEGY

• Trying to differentiate on a feature buyers do not perceive as lowering their cost or enhancing their well-being
• Over-differentiating such that product features exceed buyers’ needs
• Charging a price premium that buyers perceive is too high
• Ignoring need to signal value, depending only on “real” bases of differentiation
• Not identifying what buyers will consider as value

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