What term describes the differentiation of a product when it is unambiguously better or worse than competing products?

Question

Quizplus · Accepted Answer

Vertical differentiation describes the degree to which a product is perceived as superior or inferior to its competitors. This is often measured based on factors such as quality, features, design, or performance. In contrast, horizontal differentiation refers to the degree to which products are perceived as different from each other, even if they are not objectively better or worse. Idiosyncratic differentiation and spatial differentiation are not commonly used terms in economics, while non-price differentiation refers to differentiation strategies beyond pricing, such as branding or packaging.

What Term Describes the Differentiation of a Product When It