Which of the following is an example of product differentiation?
A)Two shampoos differ only in their labels,but consumers pay $0.20 more for the label they recognize.
B)Sugar can be made from sugar beets or sugar cane,and consumers cannot tell the difference.
C)Consumers substitute SUVs for cars because SUVs accommodate more passengers.

Question

Quizplus · Accepted Answer

In this scenario, the two shampoos are identical in composition, but consumers are willing to pay more for the recognizable label, indicating product differentiation. Option B involves two different sources of the same product, but consumers cannot distinguish between them, so it is not an example of product differentiation. Option C involves consumer preferences for a product with different features, but it does not involve actual product differentiation.

Which of the Following Is an Example of Product Differentiation