With examples explain product differentiation

Product differentiations is a practice by producers in imperfect market to create artificial differences between goods which perform or serve similar functions.

Product differentiation involves highlighting the features of a product or service that make it unique and valued by customers.

Features of product differentiation

• Difference in packing
• Differences in branding
• Differences in designing
• Differences in labelling
• Quality of products
• Scent/smell
• Color
• Logo