Firms providing features that appeal to a particular market segment are said to compete on a differentiation strategy.

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A differentiation strategy is one in which a firm seeks to distinguish itself from its competitors by providing unique features or characteristics that appeal to a particular market segment. This can include things like superior quality, design, customer service, or brand image. By offering something that is perceived to be different or better than what is available from competitors, firms can often command a premium price and build customer loyalty.

Firms Providing Features That Appeal to a Particular Market Segment