Which strategy involves the use of extended warranties and higher quality to stand out in the market?

The strategy that involves the use of extended warranties and higher quality to stand out in the market is differentiation. This approach focuses on making a product or service unique in ways that are valuable to consumers, allowing a business to command a higher price point and foster customer loyalty. In this case, offering extended warranties indicates a commitment to quality and consumer assurance, effectively making the product more attractive compared to competitors.

Differentiation aims to establish a competitive advantage by emphasizing unique features, superior quality, or exceptional service, which can lead to a stronger brand identity. Companies employing this strategy often provide additional benefits, such as outstanding customer support or exclusive features, to enhance their market presence and appeal to a targeted audience that values these differences.