Principles of Microeconomics / Unit 9 MIC 0803 short lesson, about 20 seconds
Four Sources of Differentiation
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The idea
Products differ in four ways: physical features, location, intangibles such as reputation and service, and perceptions shaped by habit and advertising.
In practice
Two nearly identical colas sell as different drinks to loyal buyers.
Where people slip
A difference need only exist in buyers' minds to give a firm some pricing room.
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