Business A-Level
Product Differentiation
What Product Differentiation means in Business A-Level, as defined for Pearson Edexcel.
Definitions of Product Differentiation
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
The strategic process of distinguishing a product from others in the market to make it more attractive to a particular target segment.
The strategic process of making a product or service distinct from its rivals to reduce price elasticity and increase brand loyalty.
The process of making a product distinct from competitors' products in the eyes of the customer.
Topics that use Product Differentiation
- Assessing competitiveness (Pearson Edexcel A-Level)
- Market (Pearson Edexcel A-Level)
- Meeting customer needs (Pearson Edexcel A-Level)
Related terms
- Market Segmentation
- Market Share
- Barriers to Entry
- Benchmarking
- Competitive Advantage
- Economies of Scale
- Oligopoly
- Price Elasticity of Demand (PED)
Using Product Differentiation in the exam
Definition questions usually carry one or two marks, and examiners look for the precise wording. Write the definition from memory, check it against the version above, and then use the term in a longer answer on the same topic so it sticks.
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