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Which statement correctly relates technological environment with product differentiation?

Answer and explanation

Correct answer: Technology can add new features to a product

The direct answer is option A: technology can add new features to a product. Technological environment means the effect of inventions, machines, software, research and production methods on business. Product differentiation means making a product noticeably different from competing products through features, design, quality, performance, convenience, safety or service. New technology may add better sensors, longer battery life, faster performance, improved safety or a useful digital function. Therefore it can create customer value and distinguish one product from another. Option A is correct. Option B is wrong because technology does not always make products identical; firms often use it to create differences. Option C is wrong because technology strongly affects product design and features. Option D is wrong because differentiation is not limited to colour; it can involve many important characteristics. Exam cue: if technology creates a new or improved feature, connect it with product differentiation and competitive advantage.

Related tags

Business-EnvironmentProduct-DifferentiationValue-Creation

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