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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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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.
slide4
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.
slide6
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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