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
(Only for extra credit) Consider Freddy on a rainy Thursday afternoon after losing in his favorite video game. His friend Tommy comes over to cheer him up and offers him the follow

a) The following would most likely shift a production possibilities curve to the right? b) Money should not be considered an economic resource ? c)  Which of the following is

THE BALANCING ITEM Since for ever position entry in the current and capital accounts there is a corresponding negative entry in the monetary account, and for every negative en

Define the simple statistical concepts of average Simple statistical concepts of average (mean) and standard deviation are used.  Estimating a relationship among variables need

Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. If a price floor of $20 is set, what will be the size of the resulting surplus?

d/f b/w MRTS and MRS

Determine the studies of Managerial economics Managerial economics studies the application of techniques, principles as well as concepts of economics to managerial problems of

Q. What is Transport and Storage Economies? As the output increases, unit cost of transportation of raw materials, intermediate products and finished products fall. This is for

Statistical technique used to estimate economic variable Some statistical techniques are used to estimate economic variables of interest to a manager. In a number of cases, sta

Broader the range of other uses of a commodity, higher the price elasticity of its demand intended for the fall in price though less elastic for the increase in price. As price of