Should ABC compete on price or sustainability?

• A. Price only.
• B. Sustainability may be stronger due to differentiation, though price remains competitive.
• C. Sustainability only.
• D. Neither.

Answer: (B)

The key idea is using non-price factors to stand out in a competitive market. Sustainability can differentiate ABC by offering a product or service with added value in how it’s produced, sourced, or its impact on the environment and society. When customers see that value, they may be willing to pay a price that reflects it, or at least accept prices that are competitive with rivals while enjoying the reputational and quality benefits of the sustainable approach. At the same time, price must remain attractive enough to defend market share, so the business remains competitive and accessible to price-sensitive buyers. In short, sustainability can power differentiation that strengthens price positioning, rather than relying solely on price competition.