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Eslam Zaqout. Product differentiation. Customers have different prefers along one dimension of a good For example : some customers prefer hot salsa , some prefer mild Vertical product differentiation: customers have the same ordinal preferences but not the same cardinal preferences.

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Eslam Zaqout

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Eslam zaqout

EslamZaqout


Product differentiation

Product differentiation

  • Customers have different prefers along one dimension of a good

  • For example : some customers prefer hot salsa , some prefer mild

  • Vertical product differentiation: customers have the same ordinal preferences but not the same cardinal preferences


Product differentiation1

'Product Differentiation'

  • Product differentiation can be achieved in many ways. It may be as simple as packaging the goods in a creative way, or as elaborate as incorporating new functional features. Sometimes differentiation does not involve changing the product at all, but creating a new advertising campaign or other sales promotions instead.


Eslam zaqout

  • Development or incorporation of attributes (such as benefits, price, quality, styling, service, etc.)


The seller faces an abundance of design parameters

The seller faces an abundance of design parameters

  • Product form : size, shape, physical structure of product

  • Features: calculating customer value c vs. company costs

  • How many people want each features.

  • How long it would take to introduce.

  • Whether competitors can easily copy it.

  • Performance quality.


Eslam zaqout

  • Durability: A measure of the product life under normal or stressful conditions

  • Reliability: the product will not fail and not defected.

  • Reparability: how easy it's to fix product when it fails

  • Style: how a product looks and feels to the buyer

  • Design: the integration force , how product looks and functions according to customers need


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