Which of the following best describes differentiation strategy?

Differentiation strategy involves creating unique offerings that provide distinct features or benefits that set a company’s products apart from competitors. This uniqueness allows a business to charge higher prices based on the perceived value these special features provide to customers. For example, a company may invest in research and development to create innovative products that meet specific customer needs or preferences that existing products do not. This approach leads to brand loyalty, as consumers are often willing to pay a premium for products they perceive as superior or different from others on the market.

Other options describe approaches that do not align with the core principles of differentiation. Providing similar value offerings with lower costs relates to a cost leadership strategy, focusing on affordability rather than uniqueness. Highly standardized products point toward mass production and cost efficiency, which does not encompass special features or individualized customer engagement. Lastly, exclusive products targeting broad audiences might suggest that the products are unique, but if they are truly exclusive, they typically don't target broad audiences, which can contradict the nature of differentiation focused on delivering unique value often to niche markets.