Terms and Conditions
Following results are obtained by our Internet Research Algorithm:
In diffused preference, consumer preferences may be scattered throughout the space, indicating that consumers vary significantly in their choices.
The first brand entering the market is likely to position itself to appeal most people. A second competitor could locate next to the first brand and try to fight for market share, or it could locate in a corner to attract a customer group which was not satisfied with the center brand.
If several brands are present in the market, they try to position themselves throughout the space and show real differences to match differences in consumer choices.
The clustered preferences refer to the natural segments that get created due to the shared choices of a group of customers. The first firm in this market has many options like It might position in the center, hoping to appeal to all groups. It might stand in the largest market segment. It might develop several brands, each placed in a different sector. If the first firm developed only one brand, competitors would enter and introduce brands in other areas.