Chapter 7 - Product Differentiation - 10/14


Product differentiation is present when consumers perceive a certain firm's product to have more value than another firm's product. While their offerings may have very subtle to extreme differences, it all comes down to consumer perception. it's all about standing out from the crown. Niek sets itself apart by offering high quality sportsware that is deemed to be top of the line or exclusive to only the best athletes. This perception makes consumers willing to pay higher prices because they perceive that they are paying for a higher quality product as a result of the brand name . Nike is considered the standard. They are selling an ability, not just a product. Consumers believe "if you have x Nike product, you will perform better". This strategy is very effective.
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https://www.cleverism.com/stand-crowd-examples-differentiation/

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