Which of the following is an example of product differentiation? (Check all that apply.) A. Attractive...

Which of the following is an example of product differentiation? (Check all that apply.)

A. Attractive packaging.

B. Branding with established recognized name.

C. Substantial economies of scale that serve as a barrier to small firm entry into the industry.

D. Unique product options such as personalized color, style, and artwork.

Expert Solution

The option is (A):- Attractive packaging.

(A) Among all the options I think attractive packing can be stated as an example of product differentiation, if we are in a monopolistic competition, and our opposition firm sells similar homogeneous product like us , then by making the packing of our product more attractive than them, can lead to our advantage.

But, I must say option b and d can some what stated as product differentiation, considering option b , lets take for example let us consider that we sell tooth paste , then putting the banner of colgate as our brand, we definitely get a advantage over our opposition. Now considering option d, if you add a different style and flavour to the product you are selling, though the product is similar to your opposition can be stated as an example of product differentiation, but among all this 3 ,I think option a is more appropriate.

Rahul Sunny answered 2 years ago

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