Successful differentiation allows a firm to attract sophisticated and prestigious buyers and thereby charge a price that is 20 to 25% higher than the industry's average price. take sales and market share away from rivals by undercutting them on price and enjoy widespread recognition among buyers for having the best product in the industry. command a premium price for its product and/or increase unit sales (because additional buyers are won over by the differentiating features) and/or gain buyer loyalty to its brand (because many customers really like the differentiating features and bond with the company and its products). be the best-cost provider of a product or service having appealing attributes, increase profits by spending more on marketing and advertising, and earn higher profit margins than rivals. escape being dragged into a price war with industry rivals and also avoid having to