Question

A watch manufacturing company has priced its goods at a rate which is higher than what other companies offer. the watches made by this company do not have any stand out feature to differentiate itself from the other companies or justify its high price. this company would be considered as a _____ firm.

Answer 1

"Stuck in the middle" firm.

These types of companies do not differentiate themselves or offer better prices, so they are stuck in the middle and at a competitive disadvantage in the marketplace.

Answer 2

This company would be considered as a Price Discriminating firm.

Step-by-step explanation:

Whereas product differentiation is a pricing strategy whereby companies charge higher prices by distinguishing their product among competing products to make it more attractive to a specific target market, Price Discrimination prices its goods at higher prices without a focus on distinguishing its product from others.