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A Health Drink Company Is Known for Launching Drinks with Flavors

Question 83

Multiple Choice

A health drink company is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotic flavored drinks. It also charges higher than what other health drink companies charge. What advantage would the company enjoy because of the strategy it follows?


A) It can depend on its ability to reduce the price to drive competition out of the market.
B) Customers always prefer a product with features rather than a cheaper alternative.
C) It has an ability to obtain premium prices from customers.
D) It does not need to spend significant funds on advertising.
E) Customers are always eager to pay extra to obtain the unique features that a firm is trying to build its strategy around.

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