On product differentiation

In 1933, Edward Hastings Chamberlain an American economist published the Theory of Monopolistic Competition, in which he sets the ground for the term product differentiation. He considers product differentiation as the process of distinguishing a product or service from others, to make it more attractive to a particular target market. The goal of including differentiation in a product strategy is to establish a position in the market which current and future customers will associate to being unique; thus, the company gains a competitive advantage. The most common sources of differentiation are quality, design, functional features, sales activities (advertising), availability (timing, … Continue reading On product differentiation