While firms often alter the objective properties of their products or services in order to implement a product-differentiation strategy, the existence of product differentiation is always a matter of customer perception.

Question

Quizplus · Accepted Answer

Product differentiation is not just about the objective features and characteristics of the product but also how customers perceive it as different from other competing products in the market. It is the customers' perception that ultimately determines whether a product is differentiated or not.

While Firms Often Alter the Objective Properties of Their Products