Product differentiation involves making a product that is
A) completely different from the products of competing firms.
B) slightly different from the products of competing firms.
C) cheaper than the products of competing firms.
D) very different from the products of competing firms.
E) no different to the products of competing firms.

Question

Quizplus · Accepted Answer

Product differentiation involves creating a product that has unique attributes or features that distinguish it from the products offered by competitors. These unique features may be slight or minor, but they should be significant enough to influence the buying decision of consumers. Thus, option B (slightly different from the products of competing firms) is the best choice. Option A is incorrect because making a product that is completely different from competing products may not be feasible or practical, and consumers may not be receptive to such a drastic change. Option C is incorrect because product differentiation is not necessarily about making a cheaper product - it's about creating a unique product that meets the needs of consumers in a way that competing products do not. Option D is incorrect because while the product should be different, it does not need to be very different. Option E is also incorrect because if the product is no different from competing products, then there is no differentiation and it may not stand out in the market.

Product Differentiation Involves Making a Product That Is