differentiation

differentiation definition - business

differentiation

Unique qualities, perceived or real, of a good or service that distinguish it from a competing good or service. For example, a consumer products company may develop a razor with an additional blade and advertise that it produces a closer shave. Companies use differentiation in order to improve sales and/or charge a higher price. Also called product differentiation.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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