Factors of emergence of differentiation of products
Differentiation of products has led to emergence of the monopolistic competition.
It is possible to refer the following distinctions to factors of emergence of differentiation:
- distinctions in quality;
- distinctions in service;
- distinctions in advertizing.
And now in more detail about above-mentioned factors.
Distinction in quality. In this case it is not obligatory at all that the goods will be good or bad. At the choice of some product, we pay attention to a lot of things. So, the simple roll has to be: a) tasty, b) useful, c) with long period of storage, d) nourishing, e) noncaloric and so on. However it is not so simple to combine all these qualities in one product. Often, winning in one, the producer loses in another. The roll can long be stored, but not the fact that it is prepared from natural products. Or it can be tasty, but period of storage can not suit you.
Here it is possible to include also how the goods are packed whether it is convenient to transport it.
It should be noted the fact that can form basis of differentiation of products imaginary distinctions of products on quality. So, for example, the test has been carried out. Smokers were given cigarettes of different brands. Many smokers could not define what brand, from the provided cigarettes, they prefer in usual life. In this case, for consumers there is no special difference whether there are distinctions in quality between goods. The main thing that it seems so to them.
Distinction in service. This factor can be illustrated as follows. Let's assume that you want to buy the computer. The price of the same model in different sales outlets differs. Also service differs. Someone suggests to buy the computer with the annual guaranteed service, with delivery, installation and loading of all necessary programs. Someone just suggests to buy the computer and on that to disperse.
Therefore, distinction in service also leads to emergence of differentiation of products.
Distinction in advertizing.
Advertizing often helps the consumer to choose that product which is necessary for it. It is meant it that advertizing tells about what type of rolls tasty, what look – useful what has storage horoshiysrok. And, proceeding from advertizing, the consumer already precisely knows to what producer to give preference.
Besides advertizing helps to create the new offer from consumers. Once you advertized advantages of the washing vacuum cleaner, many housewives have understood that they dreamed of this product.
In addition to all above-mentioned, advertizing unostentatiously suggests us to give preference to some product, associating with it certain emotions. So, advertizing of carbonated drink, unostentatiously forces us to give preference to it. It is connected with the fact that this drink was advertized by cheerful carefree people who are surrounded by a lot of friends. It, in turn, causes our positive emotions with which we also buy this aerated water.
Summing up the result, it would be desirable to tell that differentiation of products has given the chance to avoid to emergence of monopoly in many industries of economy. In addition, differentiation of products has provided to consumers wide choice of products.