{"id":4195,"date":"2020-03-28T03:26:14","date_gmt":"2020-03-28T03:26:14","guid":{"rendered":"https:\/\/commerceiets.com\/?p=4195"},"modified":"2020-03-28T03:26:14","modified_gmt":"2020-03-28T03:26:14","slug":"product-differentiation-strategy","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/product-differentiation-strategy\/","title":{"rendered":"PRODUCT DIFFERENTIATION STRATEGY"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/#PRODUCT_DIFFERENTIATION_STRATEGY\" title=\"PRODUCT DIFFERENTIATION STRATEGY\">PRODUCT DIFFERENTIATION STRATEGY<\/a><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><ul class='ez-toc-list-level-5' ><li class='ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/#In_this_post_you_will_learn_about_Product_differentiation_strategy_under_Monopolistic_competition\" title=\"In this post you will learn about Product differentiation strategy under Monopolistic competition\">In this post you will learn about Product differentiation strategy under Monopolistic competition<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/#EQUILIBRIUM_PRICE_AND_OUTPUT_DETERMINATION_UNDER_MONOPOLISTIC_COMPETITION\" title=\"EQUILIBRIUM\/\nPRICE AND OUTPUT DETERMINATION UNDER MONOPOLISTIC COMPETITION\">EQUILIBRIUM\/\nPRICE AND OUTPUT DETERMINATION UNDER MONOPOLISTIC COMPETITION<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/#SHORT_RUN_EQUILIBRIUM\" title=\"SHORT\nRUN EQUILIBRIUM\">SHORT\nRUN EQUILIBRIUM<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/#LONG_RUN_EQUILIBRIUM\" title=\"LONG RUN EQUILIBRIUM\">LONG RUN EQUILIBRIUM<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/#ROLE_OF_PRODUCT_DIFFERENTIATION_IN_DETERMINATION_OF_PRICE_AND_OUTPUT\" title=\"ROLE OF PRODUCT DIFFERENTIATION IN\nDETERMINATION OF PRICE AND OUTPUT\">ROLE OF PRODUCT DIFFERENTIATION IN\nDETERMINATION OF PRICE AND OUTPUT<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"product-differentiation-strategy\"><span class=\"ez-toc-section\" id=\"PRODUCT_DIFFERENTIATION_STRATEGY\"><\/span><strong>PRODUCT DIFFERENTIATION STRATEGY<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"in-this-post-you-will-learn-about-product-differentiation-strategy-under-monopolistic-competition\"><span class=\"ez-toc-section\" id=\"In_this_post_you_will_learn_about_Product_differentiation_strategy_under_Monopolistic_competition\"><\/span>In this post you will learn about Product differentiation strategy under Monopolistic competition<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>Product differentiation is the means used by a firm in a <a href=\"https:\/\/commerceiets.com\/monopolistic-competition\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"monopolistic competitive (opens in a new tab)\">monopolistic competitive<\/a> market with many firms selling similar products to differentiate its product from that of other firms. Product Differentiation strategy is adopted to capture more market share and to maximize profits.<\/p>\n\n\n\n<p>Product differentiation can be real or fancied. It is real when\nthere are slight differences in the product of the firm as in taste if it is a\nfoodstuff, or in quality etc. It is fancied if the difference is just to\nattract the customer and not real differentiation, for example, differences in packaging,\ndesign etc. Firms in such markets engage in active advertising to attract\ncustomers and to market their products.<\/p>\n\n\n\n<p>Product differentiation may take place in the form\nof:<\/p>\n\n\n\n<p><strong>1.Brand Name:<br \/>\n<\/strong>Products are known by their Brand names. Over the years certain\nfirms acquire goodwill in the market. Firm\u2019s name itself becomes a brand name\nfor its product. Godrej cupboards, Phillips TV are some of the examples. Some\nproducts get established in the market by the product\u2019s name as in the case of\nColgate Tooth Paste, Parker Pen , Tata Tea etc.<\/p>\n\n\n\n<p><strong>2.Size:<br \/>\n<\/strong>Products are manufactured in different sizes. Economy, Family,\nLarge, Extra large are some of the sizes in which the products are available.\nCertain firms may specialize in sizes like Family size or economy size. Thus the\nProduct is known in the market for its particular size.<\/p>\n\n\n\n<p><strong>3.Design:<br \/>\n<\/strong>Products could be differentiated on the basis of design.\nRefrigerators, Cupboards, Scooters, Cars, are some of the products which are\nconsidered by the buyers on the basis of design.<\/p>\n\n\n\n<p><strong>4.Color:<br \/>\n<\/strong>Color is one of the important factor on which goods are\ndifferentiated. Textiles, Readymade Garments, Plastic Products, Automobiles,\nare preferred by the Customer on the basis of their color.<\/p>\n\n\n\n<p><strong>5.Taste and Perfume:<br \/>\n<\/strong>Products like Confectioneries, toothpaste , soaps, cosmetics are\nselected on the basis of taste or perfume<\/p>\n\n\n\n<p><strong>6.Good Salesmanship:<br \/>\n<\/strong>Customers may prefer the Products of a particular firm against\nits rival firms simply because of good salesmanship, positive attitude,\napproach and cooperation of the sales people.<\/p>\n\n\n\n<p><strong>7.After Sale Service:<br \/>\n<\/strong>Consumer Durable items have a warranty period during which free\nservice is offered. Services are offered thereafter on payment. Quality and\npromotions of after sale service influence the customers while selecting the products.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"equilibrium-price-and-output-determination-under-monopolistic-competition\"><span class=\"ez-toc-section\" id=\"EQUILIBRIUM_PRICE_AND_OUTPUT_DETERMINATION_UNDER_MONOPOLISTIC_COMPETITION\"><\/span><strong>EQUILIBRIUM\/\nPRICE AND OUTPUT DETERMINATION UNDER MONOPOLISTIC COMPETITION<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A firm is said to be in equilibrium when it is incurring\nminimum costs and gaining maximum profits. Under monopolistic competition, the\nequilibrium is ascertained differently for industry and firm. <\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>EQUILIBRIUM\/\nPRICE AND OUTPUT DETERMINATION FOR FIRM<\/strong><\/p>\n\n\n\n<p>For a\nfirm, the equilibrium may be determined in both long run and short run.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"short-run-equilibrium\"><span class=\"ez-toc-section\" id=\"SHORT_RUN_EQUILIBRIUM\"><\/span><strong>SHORT\nRUN EQUILIBRIUM<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Under monopolistic competition, the firm will be in\nequilibrium position when marginal revenue is equal to marginal cost.&nbsp;So\nlong the marginal revenue is greater than marginal cost, the seller will find\nit profitable to expand his output, and if the MR is less than MC, it is\nobvious he will reduce his output where the MR is equal to MC.&nbsp; <\/p>\n\n\n\n<p><strong>CONDITIONS:<\/strong> The two conditions to be satisfied for the firm to be in\nequilibrium are as follows:<\/p>\n\n\n\n<p>(1) MC = MR<\/p>\n\n\n\n<p>(2) MC must cut MR from below. <\/p>\n\n\n\n<p>Under monopolistic competition also, a firm will make the\nmaximum profits when these two conditions are satisfied.<\/p>\n\n\n\n<p>The firm may face any of three situations:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"580\" height=\"273\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-114.png\" alt=\"\" class=\"wp-image-4202\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-114.png 580w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-114-300x141.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><figcaption><strong>PRODUCT DIFFERENTIATION STRATEGY<\/strong><\/figcaption><\/figure>\n\n\n\n<p><strong><em>SUPER NORMAL PROFIT<\/em><\/strong><\/p>\n\n\n\n<p>Under monopolistic competition, a firm earns maximum\nprofits or is in equilibrium when MC=MR and MC cuts MR from below. In the\ndiagram the firm is in equilibrium at OX level of output and at the point E, at\nwhich MR and MC are equal and MC cuts MR from below.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"180\" height=\"203\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-113.png\" alt=\"\" class=\"wp-image-4201\"\/><figcaption><strong>PRODUCT DIFFERENTIATION STRATEGY<\/strong><\/figcaption><\/figure>\n\n\n\n<p>The firm is earning super-normal profits or abnormal\nprofits since average revenue is greater than average cost, i.e., AR &gt; AC.\nThe main reason for these abnormal profits is that, the other rival firms are\nnot able to produce closely competitive substitutes. Hence, they are not able\nto attract consumers towards their product.<\/p>\n\n\n\n<p><strong><em>NORMAL PROFIT<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p>If under monopolistic competition, the price of product is equal to AC, the firm will be earning normal profit. In Figure MC is equal to MR at point E. This is the equilibrium point. At equilibrium point, the equilibrium output is OX<sub>1<\/sub>&nbsp;and price is OP<sub>1<\/sub>. At this point, AC is NX<sub>1<\/sub>&nbsp;and AR is also NX<sub>1<\/sub>&nbsp;i.e., AC=AR. Thus the firm will be earning only normal profits.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"213\" height=\"174\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-112.png\" alt=\"\" class=\"wp-image-4200\"\/><figcaption><strong>PRODUCT DIFFERENTIATION STRATEGY<\/strong><\/figcaption><\/figure>\n\n\n\n<p><strong><em>SUSTAINING LOSSES<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<p>It is also possible that the demand may not be favourable\nto firm under monopolistic competition, i.e., it may not be able to attract the\nconsumers towards its product, if it fixes price equal to its SAC. But it is\ncompelled to sell its product at the price which is less than even its short\nperiod average cost.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-111.png\" alt=\"This image has an empty alt attribute; its file name is image-111.png\"\/><figcaption><strong>PRODUCT DIFFERENTIATION STRATEGY<\/strong><\/figcaption><\/figure>\n\n\n\n<p>Hence, it may incur losses such\nfirm, in the long-run may leave the industry, if it is not possible for it to\nchange its demand relative to its cost conditions through product\ndifferentiation and advertisement. In figure the firm is in equilibrium at\npoint E, where MC=MR. At this equilibrium level the output is OX<sub>1<\/sub>&nbsp;at price OP. Corresponding to this, the\naverage cost LX<sub>1<\/sub>&nbsp;is greater than average\nrevenue MX<sub>1<\/sub>, Since, revenue is less than cost, the firm will\nsustain losses equal to the shaded area PLMN.<\/p>\n\n\n\n<h3 class=\"has-text-align-center wp-block-heading\" id=\"long-run-equilibrium\"><span class=\"ez-toc-section\" id=\"LONG_RUN_EQUILIBRIUM\"><\/span><strong>LONG RUN EQUILIBRIUM<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Long period refers to that time period in\nwhich each firm can change its production capacity by changing the fixed as\nwell as variable factors. New firms can enter the industry and old firms can\nexit it. Basically, the firms in the long run will get the normal profits.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"204\" height=\"209\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-110.png\" alt=\"\" class=\"wp-image-4198\"\/><figcaption><strong>PRODUCT DIFFERENTIATION STRATEGY<\/strong><\/figcaption><\/figure>\n\n\n\n<p><a href=\"http:\/\/cdn.economicsdiscussion.net\/wp-content\/uploads\/2015\/05\/clip_image00815.jpg\" target=\"_blank\" rel=\"noopener\"><\/a><\/p>\n\n\n\n<p>If, the\nexisting firms are making super normal profits, it will attract some of the new\nfirms in the industry. The entry of new firms will result into over production\nwhich will have a depressing effect on price. Hence all the firms in the long\nrun will get normal profits. In figure output is measured on X-axis whereas\nprice on Y-axis. LAC is the long run average cost and LMC is the long fun\nmarginal cost curve. The firm is in equilibrium because at point E, MC = MR.\nThe equilibrium output is OX<sub>1<\/sub>&nbsp;and price\nis OP. Since, at this equilibrium average revenue curve is tangent to long run\naverage cost curve at point M; hence the firms are earning normal profits.<\/p>\n\n\n\n<p class=\"has-green-background-color has-background\"><strong>EQUILIBRIUM\/\nPRICE AND OUTPUT DETERMINATION FOR INDUSTRY<\/strong><\/p>\n\n\n\n<p>Under monopolistic competition, the word\n\u2018group\u2019 is used for industry. There is a difference between an industry and a\ngroup. An industry generally consists of firms which produce homogeneous\nproduct, whereas a group is composed of firms which produce a differentiated\nproduct. Thus group consists of a number of firms producing close substitutes.\nFor example, shoe making firms like \u2018Bata\u2019, \u2018Carona\u2019, and \u2018Liberty\u2019 are a group.<\/p>\n\n\n\n<p>Assumptions of equilibrium of industry:<\/p>\n\n\n\n<p>(i) Demand and cost curves of all the firms\nare identical,<\/p>\n\n\n\n<p>(ii) No firm can influence the price and\noutput decisions of its rivals.<\/p>\n\n\n\n<p>The Group Equilibrium is shown below with the help of following figure:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"199\" height=\"209\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-109.png\" alt=\"\" class=\"wp-image-4197\"\/><figcaption><strong>PRODUCT DIFFERENTIATION STRATEGY<\/strong><\/figcaption><\/figure>\n\n\n\n<p>In the diagram,\nDD<sub>1<\/sub>&nbsp;is the group demand curve and CC is the cost\ncurve. Every firm would like to fix up OP price because at this price the\ndifference between price and cost is the maximum and producer gets supernormal\nprofit equal to PMTB. The other firms will be attracted to enter the market and\nnow the market demand will be shared by a larger number of firms. In this\nsituation demand curve will shift downwards and the new demand curve will be DD<sub>2<\/sub>.<\/p>\n\n\n\n<p>The number of\nfirms in the market will continue increasing till the new demand curve DD<sub>2<\/sub>&nbsp;is tangent to the cost curve. In the Figure,\nat point \u2018K\u2019 demand curve is tangent to the cost curve. At this point firm will\nbe earning only normal profit and this will be the equilibrium position of the\nfirm. Thus under monopolistic competition, OB is the equilibrium price and ON\nis the equilibrium output.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\" id=\"role-of-product-differentiation-in-determination-of-price-and-output\"><span class=\"ez-toc-section\" id=\"ROLE_OF_PRODUCT_DIFFERENTIATION_IN_DETERMINATION_OF_PRICE_AND_OUTPUT\"><\/span><strong>ROLE OF PRODUCT DIFFERENTIATION IN\nDETERMINATION OF PRICE AND OUTPUT<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Product\ndifferentiation as the basis for establishing a downward-falling demand curve\nwas first introduced in economic theory by Sraffa.<\/p>\n\n\n\n<p>Yet\nit was Chamberlin who elaborated the implication of product differentiation for\nthe pricing and output decisions as well as for the selling strategy of the\nfirm.<\/p>\n\n\n\n<p>Chamberlin\nsuggested that the demand is determined not only by the price policy of the\nfirm, but also by the style of the product, the services associated with it,\nand the selling activities of the firm.<\/p>\n\n\n\n<p>Thus\nChamberlin introduced two additional policy variables in the theory of the\nfirm: <\/p>\n\n\n\n<ul><li>The product itself <\/li><li>Selling activities. <\/li><\/ul>\n\n\n\n<p>The\ndemand for the product of the individual firm incorporates these dimensions. It\nshows the quantities demanded for a particular style, associated services,\noffered with a specific selling strategy.<\/p>\n\n\n\n<p><strong>Thus the demand curve will shift if:<\/strong><\/p>\n\n\n\n<p>(a)\nThe style, services, or the selling strategy of the firm changes;<\/p>\n\n\n\n<p>(b)\nCompetitors change their price, output, services or selling policies;<\/p>\n\n\n\n<p>(c)\nTastes, incomes, prices or selling policies of products from other industries\nchange.<\/p>\n\n\n\n<p>The\neffect of product differentiation is that the producer has some discretion in\nthe determination of the price. He is not a price-taker, but has some degree of\nmonopoly power which he can exploit. However, he faces the keen competition of\nclose substitutes offered by other firms. Hence the discretion over the price\nis limited.<\/p>\n\n\n\n<p>Product differentiation creates brand loyalty of the consumers and gives rise to a negatively sloping demand curve. Product dif\u00adferentiation, finally, provides the rationale of selling expenses. Product changes, adver\u00adtising and salesmanship are the main means of product differentiation.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/demand\/\">Theory of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-demand\/\">Law of Demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/demand-function\/\">Demand Function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/exceptions-of-law-of-demand\/\">Exceptions of law of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/elasticity-of-demand\/\">Elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/change-in-demand\/\">Change in demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/price-elasticity-of-demand\/\">Price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-law-of-demand-and-elasticity-of-demand\/\">Law of demand Vs Elasticity of demand<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/factors-affecting-price-elasticity-of-demand\/\">Factors affecting price elasticity of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/production-function\/\">Production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-short-run-long-run-production-function\/\">Short run vs long run production function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-variable-proportions\/\">Law of variable proportions<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/types-of-demand\/\">Types of demand<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/managerial-economics\/\">Managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/characteristics-of-managerial-economics\/\">Characteristics of managerial economics<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-managerial-economics\/\">Scope of managerial economics<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/utility-analysis\/\">Utility analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-marginal-utility\/\">Law of diminishing marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-equi-marginal-utility\/\">Law of equi marginal utility<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium\/\">Consumers Equilibrium<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/indifference-curve-analysis\/\">Indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/consumer-equilibrium-using-indifference-curve-analysis\/\">Consumer equilibrium using indifference curve analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-tp-ap-and-mp\/\">Relationship between TP, AP and MP<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-increasing-returns\/\">Law of increasing returns<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/law-of-diminishing-returns\/\">Law of diminishing returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/law-of-constant-returns\/\">Law of constant returns<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/returns-to-scale\/\">Returns to Scale<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/economies-and-diseconomies-of-scale\/\">Economies and diseconomies of scale<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/concept-of-costs\/\">Concept of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/relationship-between-ac-and-mc\/\">Relationship between AC and MC<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/traditional-theory-of-cost\/\">Traditional theory of costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/modern-theory-of-cost\/\">Modern theory of costs<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explicit-vs-implicit-costs\/\">Explicit vs Implicit costs<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/revenue\/\">Revenue<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-competition\/\">Perfect competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-meaning\/\">Monopoly<\/a>&nbsp;<\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/price-discrimination\/\">Price discrimination<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-perfect-competition-and-monopoly\/\">Difference between perfect competition and monopoly<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perfect-and-monopolistic-competition\/\">Perfect Vs Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopoly-and-monopolistic-competition\/\">Monopoly and monopolistic competition<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/\">Product differentiation strategy<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/monopolistic-competition\/\">Monopolistic competition<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/national-income-in-india\/\">National Income in India<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/measurement-of-national-income\/\">Measurement of national income in India<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/consumption-function\/\">Consumption function<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/keynesian-psychological-law-of-consumption\/\">Keynes Psychological law of consumption<\/a><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"266\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg\" alt=\"PRODUCT DIFFERENTIATION STRATEGY\" class=\"wp-image-787\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1024x266.jpg 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-300x78.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-768x199.jpg 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize-1536x398.jpg 1536w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-Presentation-resize.jpg 1920w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>PRODUCT DIFFERENTIATION STRATEGY<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>PRODUCT DIFFERENTIATION STRATEGY In this post you will learn about Product differentiation strategy under Monopolistic competition Product differentiation is the means used by a firm in a monopolistic competitive market with many firms selling similar products to differentiate its product from that of other firms. Product Differentiation strategy is adopted to capture more market share&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/product-differentiation-strategy\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;PRODUCT DIFFERENTIATION STRATEGY&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":4196,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[113,92],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/4195"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=4195"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/4195\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/4196"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=4195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=4195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=4195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}