Product differentiation

Question

Quizplus · Accepted Answer

Product differentiation refers to the attempt of firms to make products look different in the minds of consumers, even though they are essentially the same as other products in the industry. This is often done through branding, advertising, packaging, and other marketing techniques. Product differentiation is not a characteristic of a perfectly competitive market structure, as products in this type of market are homogeneous, or identical. It is also not employed only in a monopoly market structure, as firms in oligopoly and monopolistic competition also use it to differentiate their products from those of their competitors.

Product Differentiation