ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Product differentiation: real or imagined differences between competing products in the same industry. Uses nonprice competition.

Detailed explanation-2: -The elements of differentiation include product design, marketing, packaging, and pricing.

Detailed explanation-3: -Horizontal: Goods are different but at the same price some consumers will buy one and some will buy other, it really depends on their preferences. Example: Pepsi y Coca Cola; 2. Vertical: Goods are different and all consumers would prefer one to the other if they were sold at the same price.

Detailed explanation-4: -Competitive differentiation is how a company’s product or service is distinct from what its competitors offer. It is based on what customers value, such as functionality, brand, pricing, or customer service. The role of marketing is to make sure that potential buyers understand what sets an offering apart.

Detailed explanation-5: -Product differentiation definition Product differentiation is the characteristic or characteristics that make your product or service stand out to your target audience. It’s how you distinguish what you sell from what your competitors do, and it increases brand loyalty, sales, and growth.