Which of the following factors contributes to effective differentiation?

The factor that contributes to effective differentiation is the presence of unique features that add value to the product. Differentiation is a strategy that aims to make a product or service stand out from competitors by offering something distinctive that meets consumer needs in a unique way. This can include innovative features, superior quality, exceptional customer service, or other attributes that enhance the customer experience and create a competitive advantage.

When a product has unique features that provide additional value to customers, it can justify a higher price point and foster brand loyalty. Customers are more likely to choose a product that they perceive as different from others in the market and that offers them specific benefits that align with their preferences or desires.

In contrast, price reduction strategies may attract customers in the short term but do not create real differentiation based on quality or features. A broad market appeal without segmentation fails to target specific customer needs, which is essential for effective differentiation. Similarly, a focus on low operational costs typically relates to cost leadership rather than differentiation, as it emphasizes efficiency over unique value propositions.