Question

Just prior to the introduction of the​ Roomba, Electrolux introduced a similar robot in Europe that featured a​ sleek, space-aged design and a​ $1,500 price point. In​ contrast, the form factor of the iRobot Rumba was simple and its price point was much lower. Because of its unique​ ____________, the Rumba easily outperformed the rival product in terms of sales.A. differentiationB. market segmentationC. market development

Answer 1

The answer is: A) product differentiation

Step-by-step explanation:

Product differentiation is a marketing strategy that distinguishes a product or service from the competition. The benefits of the product (or service) are highlighted while distinguishing them from the competition.

A product differentiation strategy usually focuses on:

• price: either by selling at the lowest possible price or selling at a high for exclusivity or luxury
• performance and reliability: offer the best possible product and/or the most reliable product
• location and service: focuses on community ties (being local companies) and offer high quality service

In this case the Rumba differentiated itself from the competition by offering a much lower price.