68: Product Differentiation and Advertising

Question 1

ways to differentiate products (3)

Answer 1

1) style or type to satisfy variety of individual preferences
2) location
3) quality

Question 2

features of differentiated product industries (2)

Answer 2

1) competition among sellers for a limited market demand

2) greater diversity able to satisfy more preferences

Question 3

advertising

Answer 3

an attempt to influence consumer tastes and preferences in order to persuade more people to buy at the going price

Question 4

brand names

Answer 4

a name owned by a particular firm that distinguishes its products from those of other firms, creating market power as well as establishing consistency