product differentiation

Product differentiation strategies attempt to differentiate existing products that are in the same product group. Usually finds
this is done through different functionality. This is called "horizontal" differentiation and includes all differences based on external appearances or
supplementary services are based (eg on the helpdesk for a web-based service). In addition, the perceived quality of a product that can
"Vertical" differentiation has a decisive influence on sales. In this case, consumers prefer certain products from an equivalent one
Range. Due to the changeability of digital goods, product differentiation through further development is easy to realize.

New functionalities and objects of a product class can be created without a media break. Product differentiation is an effective tool for reducing the interchangeability of products and provides the basis for setting the price above the competitive price.

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