Product differentiation occurs when
A)A completely new process is used to produce a familiar product.
B)One firm produces many varieties of a product.
C)Buyers perceive differences in the products of several companies.

Question

Quizplus · Accepted Answer

Product differentiation occurs when buyers perceive differences in the products of several companies. This can be achieved through differences in quality, design, packaging, features, and other factors that influence consumer preferences. A completely new process for producing a familiar product would be an innovation rather than product differentiation, and one firm producing many varieties of a product would be product variety.

Product Differentiation Occurs When