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Product differentiation is a product's unique value on the market. This includes anything that gives a product appeal to customers including quality, branding, cost and features.
Brand | Build quality | Capabilities | Capacity | Colors | Comfort | Compatibility | Complementary products & services | Configurability | Convenience | Country of origin | Customer experience | Customer service | Customization options | Durability | Efficiency | Endurance such as battery life | Exclusivity | Features | Figure of merit | Flavors | Functions | Good for people & planet | Guarantee | Health & wellness | Inclusivity | Language support | Local sourcing | Low maintenance | Materials quality | Natural ingredients | Packaging | Performance | Price | Privacy | Product information | Product name | Ratings & reviews | Reliability | Repairability | Reputation | Safety | Security | Sense & sensation | Service experience | Size & space | Smell | Speed | Storytelling | Styles | Taste | Technical quality | Ties to culture & tradition | Time-saving features | Upgradability | Usability | User interfaces | Variety of product versions | Versatility | Visual appeal | Visual branding | Warranty |
A figure of merit is a number that customers intensely care about in a product category. For example, the range of an electric car in miles.A way to think about differentiation is in terms of the crowded shelves of a supermarket. If you look at a particular section, such as coffee, you'll see that each product stands out in some way such as branding, organic certification, country of origin, flavor and price. Buyers for a supermarket will typically only buy products that offer something unique to their shelves.In a commoditized industry, establishing differentiation is difficult or impossible as customers see commodity products as all the same. Industries with strongly differentiated products such as luxury goods tend to support high margins.|
Type | | Definition | The unique value of a product relative to other products on the market. | Related Concepts | | Next: Product Quality
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