APICS Certified Supply Chain Professional (CSCP) — Question 311

The first step in developing a product differentiation strategy is to:

Answer options

• A. study customer needs.
• B. define customer segments.
• C. determine design modifications.
• D. establish competitive priorities.

Correct answer: A

Explanation

The correct answer is A, as understanding customer needs is essential to differentiate a product successfully. Without this foundational knowledge, defining segments, determining modifications, or establishing priorities may not effectively target the intended audience.