Types of Product Differentiation in Monop. Comp.

Question 1

State 2 physical differentiation in monopolistic competition and explain

Answer 1

• Physical Differentiation: Adding physical characteristics of a product
• Quality: Offering higher or lower quality versions of a product to cater to different market segments

Question 2

State 2 marketing differentiation in monopolistic competition and explain

Answer 2

• Advertising: Creating a unique brand image through advertising to distinguish a product
• Packaging: Unique and attractive packaging can set a product apart

Question 3

State 3 distribution differentiation in monopolistic competition and explain

Answer 3

• Shop Presence: Offering products through exclusive types of stores
• Online presence: Selling products through online platforms thus, reaching a wider audience
• Telephone sales: Utilising telemarketing or direct sales over the phone