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The basic drivers of product differentiation are attributes, position, pricing methods, and information. These drivers are what encourage customers to purchase one brand over another. Being “different” is beneficial if the customer feels they are getting a “better bang for their buck”. That is, if the customer prefers the company’s product relative to competitors. The brands attributes are what distinguishes the brand from other brands. Attributes for a manufacturer can be product quality, design, packaging of product, etc… Attributes for a retailer are the variety of products they carry, and perhaps the customer services they offer such as their return policy. “Product differentiation only adds value if the additional customer benefit obtained from enhancing the product is greater then the additional cost of enhancing the product.” (p. 353) “Companies seek a differentiation advantage by maneuvering for position in brand space.”(p.355) The brand space describes product features. For example, some companies may offer a complex product feature whiles others may offer a simple product feature and yet another offer something in between. An example of this is with weapons systems. Some weapons systems are designed for basically anyone to use. A shotgun is an example of a weapons system that is relatively simple to load, shoot, and clean. An M16 is a little more complex and takes a little more expertise than a shotgun. Disassembling, loading, and firing are all a bit more complex. For some this is preferred while for others it may be a little too complex. Companies have to decide which end of the brand space they will do best at. Pricing methods are yet another way a company may differentiate from competitors. Wal-Mart for example, offers their price match guarantee. This enables customers to bring in coupons and advertisements from other stores and get their product for the other stores price. “Many companies use discounts, promotions, and sales to stimulate

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