Advantages of product differentiation, Managerial Economics

Advantages of Product Differentiation

We can distinguish between those advantages for the firm itself and those for the consumer:

a.          For the firm.

i.         The ability to increase prices without losing loyal consumers

ii.       The stability of sales, due to brand loyalty. The firm will not be subject to the risks and uncertainties of intense price competition.

b.  For the Customer

i.          Consistent Product quality

ii.         Wide consumer choice, between differentiated products.

Posted Date: 11/28/2012 5:32:48 AM | Location : United States







Related Discussions:- Advantages of product differentiation, Assignment Help, Ask Question on Advantages of product differentiation, Get Answer, Expert's Help, Advantages of product differentiation Discussions

Write discussion on Advantages of product differentiation
Your posts are moderated
Related Questions
DIGRESSIVE TAX A tax is called digressive when the higher incomes do not make a due contribution or when the burden imposed on them is relatively less. Another way in which

A firm is employing 100 hours of labor and 50 tons of cement to produce 500 blocks. Labor costs Rs 4 per hour and cement costs Rs 12 per ton. For the quantities employed MPL = 3 an

Disadvantages of the Planned System The centrally planned economies suffer from the following limitations: Lack of choice:   Consumers have little influence over what is p

Q. Explain Maximising revenue method? In a number of cases, a firm's demand and cost conditions are such that marginal profits are greater than zero for all levels of productio

features of monopoly?

Point elasticity The point elasticity of demand is described as the proportionate change in quantity demanded in response to a very small proportionate change in price. The con


How relevent is managerial dicretion in developing countries?

WHY MANAGERS NEED TO KNOW ECONOMICS The influence of economics towards the performance of managerial duties and responsibilities is of major importance. The importance and cont

Point and arc elasticity of demand The elasticity of demand is conventionally measured either at a finite point or between any two finite points, on demand curve. The elasticit