Product differentiation
A) adds product information without increasing product cost.
B) contributes to production efficiency.
C) reduces price elasticity of demand.
D) reduces product price.

Question

Quizplus · Accepted Answer

Product differentiation makes a product more attractive by contrasting its unique qualities with other competing products. This can lead to consumers being less sensitive to price changes (reducing price elasticity of demand) because they perceive the product as unique or superior.

Product Differentiation