Consider two gas stations. One is located at a major intersection used by people
ID: 1122387 • Letter: C
Question
Consider two gas stations. One is located at a major intersection used by people commuting from populous neighborhoods to jobs located in the downtown area. The other is located on the outskirts of the city. Both gas stations sell high-grade or premium-grade gas for a higher price than low-grade or regular-grade gas. However, the gas station along the more congested route charges higher gas prices for all grades than the station on the outskirts of town. Product differentiation within and among these gas stations is based on which of the following? Check all that apply. Intangible aspects of the product Location from which the product is sold Perceptions of the product Physical aspects of the productExplanation / Answer
Option 2: Location from which the product is sold and and Option 4: Physical aspects of the product.
Explanation: Here, product differentiation is being made primarily on the basis of two factors, the actual quality of the product, which depends on its ingredient and where the product is being made available. The first one related to physical aspects of the product and the second one relates to the location from which the product is being sold.