Routledge Dictionary of Economics, Second Edition
product differentiation (L1, M3)
A change in the appearance or presentation of a product to entice consumers to believe that it is different from similar products.
This differentiation is undertaken to give the producer to some extent the power of a monopolist with a unique product. The concept is at the heart of the theory of MONOPOLISTIC COMPETITION but in practice occurs most frequently in OLIGOPOLISTIC industries.
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