Consumers do not view all soft drinks as identical to one another. Some prefer Coca-Cola, while others will only drink Pepsi-Cola. Still others will not drink either cola and drink only non-caffeinated soft drinks. This marketplace condition in which consumers do not view all competing products as identical to one another is called _____.
A) product differentiation
B) product variation
C) market segmentation
D) perceptual differentiation
E) selective perception

Question

Quizplus · Accepted Answer

Product differentiation is the marketplace condition in which consumers view competing products as different, rather than identical. The examples of consumers preferring one cola brand over another or choosing non-caffeinated soft drinks show that consumers have different preferences and perceive differences between the products. This indicates product differentiation, which is an important factor for marketers to consider when developing their marketing strategies.

Consumers Do Not View All Soft Drinks as Identical to One