Product differentiation is distinguishing products to make them more attractive to target markets. Edward Chamberlin introduced the concept in 1933. Firms use different resource endowments to create competitive advantages
Spotify's green wave logo represents sound and accessibility. Target's red bullseye symbolizes focus and precision. FedEx's hidden arrow embodies speed and reliability. Google's playful multicolor design represents innovation. Starbucks' mermaid symbol combines playfulness with elegance
A niche market is a specialized segment of consumers with distinct needs. Niches can be defined by price, demographics, quality, psychographics, and geography. Almost every market contains niches that require detailed consumer understanding
Marginal utility measures additional satisfaction from consuming one more unit. Positive utility occurs when consumption increases total utility. Zero utility means consuming more brings no extra satisfaction. Negative utility occurs when consuming more is harmful
Utility measures total satisfaction from consuming goods or services. Daniel Bernoulli first coined the term in 18th century economics. Utility is usually impossible to measure directly
A substitute is a product that can be used in place of another. Substitutes provide consumers with more choices in the marketplace. They create competition and lower prices in the market