If two shops sell the same product, how can an entrepreneur differentiate the product?
Answer and explanation
Correct answer: By offering better quality, service, or customer experience
Differentiation means creating a clear reason for customers to prefer one offering over another. Better quality, dependable service, convenient delivery, useful features, or a stronger customer experience can create such value. The claim should be genuine and consistent. Hiding information or making arbitrary rules does not create sustainable competitive advantage, so option A is correct.
Frequently asked questions
What is the correct answer to this question?
By offering better quality, service, or customer experience
Why is this the correct answer?
Differentiation means creating a clear reason for customers to prefer one offering over another. Better quality, dependable service, convenient delivery, useful features, or a stronger customer experience can create such value. The claim should be genuine and consistent. Hiding information or making arbitrary rules does not create sustainable competitive advantage, so option A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
