What defines "product differentiation"?

Product differentiation refers to the unique characteristics or attributes that make a product distinct from similar offerings in the market. This differentiation aims to highlight specific features, quality, design, brand reputation, or other factors that resonate with the target audience, setting the product apart and making it more appealing to potential customers. By successfully differentiating a product, a company can create a competitive advantage, attract more consumers, and potentially command higher prices.

In this context, options such as pricing strategies, product variety, or distribution methods do not directly define product differentiation. While these elements can contribute to a product's overall strategy, they do not inherently provide the unique characteristics required to make a product stand out in the eyes of consumers. Therefore, emphasizing the distinct attributes that define a product is essential for establishing effective product differentiation.