product differentiation
Product differentiation strategies attempt to differentiate existing products that are in the same product group. Usually finds
this takes place through different functionality. This is called "horizontal" differentiation and includes all differences that are based on external appearances or
complementary services (e.g. based on the helpdesk for a web-based service). Furthermore, the perceived quality of a product, the
"vertical" differentiation have a decisive influence on sales. In this case, consumers prefer certain products from an equivalent range.
product range. Due to the changeability of digital goods, product differentiation through further development is easy to realise.
New functionalities and objects of a product class can be created without media disruption. Product differentiation is an effective instrument for reducing the interchangeability of products and provides the basis for setting the price above the competitive price.
