level: Level 1 of 14. Product differentiation
Questions and Answers List
level questions: Level 1 of 14. Product differentiation
| Question | Answer |
|---|---|
| What is product differentiation? | Definition: Actual or perceived distinctions between closely substitute products. |
| What two types of product differentiation exist? | Two types of product differentiation: 1. Vertical - varying quality across products 2. Horizontal - similar quality but different characteristics |
| What are the two sources of product differentiation? | 1. Natural - features which arise from natural attributes 2. Strategic - distinguishing characteristics due to actions of suppliers |