ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What Is Product Differentiation? Product differentiation is what makes your product or service different and more appealing to customers than other options in your category. Product differentiation is what gives you a competitive advantage in your market.

Detailed explanation-2: -Defining a successful unique product It should have the ability to differentiate itself from other products on the market and provide a unique experience to its users. A successful product should also have a clear purpose and value proposition that resonates with customers and meets their needs.

Detailed explanation-3: -Product differentiation depends on consumers’ attention to one or more key benefits of a product or brand that make it a better choice than similar products or brands. The elements of differentiation include product design, marketing, packaging, and pricing.

Detailed explanation-4: -Product differentiation is the introduction of unique, distinctive characteristics or features to a product to ensure a USP (unique selling proposition) of the product. The differentiation enables a company to achieve a competitive advantage over other companies offering similar product substitutes.

Detailed explanation-5: -Why is product differentiation important? The goal of product differentiation is to create a competitive advantage or to make your product superior to alternatives on the market. In other words, you don’t just want to stand out from the competition, you want to stand above it.