In an effort to differentiate its offerings from its competitors, pegasus computers decided to add an extra usb port in all its laptops besides providing a free pair of delphi power bass headphones with every pegasus laptop. although the additional features increased the price of the laptops by $500, pegasus was confident that the strategy would boost demand for its laptops substantially. this is an example of

In an effort to differentiate its offerings from its competitors, Pegasus added additional features that increased the price of the laptops by $500.

This is an example of Porter's competitive strategies ( product differentiation strategy).

Explanation:

The differentiation strategy consists in offering a product similar to one of another company in the market but that has certain characteristics that make the customer perceive it as unique and to be willing to pay a higher price for it.

Strategy Variables:

It can happen when the price increases, that the difference between this and and another product ´s features is not too large, so that we lose the loyalty of our customers because they don ´t want to pay the new price .

answer; work samples;

answer; /// blank(1); increases; blank(2); decreases;