In the differentiation strategy, the costs of the organization will be passed on to the __________.

In a differentiation strategy, an organization aims to offer unique products or services that stand out in the market. This uniqueness often allows the company to charge higher prices compared to competitors who may focus on a cost leadership strategy. Therefore, the additional costs incurred in developing and marketing these differentiated offerings, such as research and development, superior materials, or enhanced customer service, are typically passed on to customers.

By highlighting the distinct value and benefits of their products or services, organizations can justify these higher prices to consumers willing to pay for them. The approach relies on the perception of added value that customers receive, making it feasible for the company to maintain or increase its profit margins despite the higher costs associated with differentiation.