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. What term refers to the marketplace condition in which consumers do not view all competing products as identical to one another?
A) product differentiation
B) product variation
C) market segmentation
D) perceptual differentiation

Question

Quizplus · Accepted Answer

Product differentiation refers to the perception that products are different from each other in some way. In this case, consumers see differences between different soft drink brands and have their own preferences based on those differences.

Consumers Do Not View All Soft Drinks as Identical to One