Which of the following is an example of product differentiation?
A)Two shampoos differ only in their labels,but consumers pay $0.20 more for the label they recognize.
B)Sugar can be made from sugar beets or sugar cane,and consumers cannot tell the difference.
C)Consumers substitute SUVs for cars because SUVs accommodate more passengers.
D)Mills produce softwood and hardwood,but the two are used for different purposes.

Question

Quizplus · Accepted Answer

The two shampoos are identical in terms of quality and composition but are differentiated only by their labels, which is why consumers are willing to pay more for a recognized brand. This is an example of product differentiation. The other options do not involve product differentiation.

Which of the Following Is an Example of Product Differentiation