Product differentiation and Added Value

Question 1

What is added value:

Answer 1

-Added value is the extra value added by businesses to their products, which allow them to raise the price. They can sometimes be tangible and intangible

Question 2

What does tangible and intangible mean:

Answer 2

• Tangible is something you can feel, you can touch, something physical, i.e. the parts of a shoe.
• Intangible is the opposite of tangible, where cannot touch the thing, i.e. A electronic banking application.

Question 3

How can a business add value:

Answer 3

• By showcasing the performance of their product

- By showcasing the quality of the product and the materials used to make it

Question 4

Other ways businesses can add value:

Answer 4

• Packaging
• Branding
• Advertising
• Speed of service