What is Differentiation and How Does it Work ?

  title={What is Differentiation and How Does it Work ?},
  author={Byron Sharp and John Dawes},
  journal={Journal of Marketing Management},
  pages={739 - 759}
In this article we provide a basic review of the relationship between differentiation and profitability. In particular we address the misconception that the reward of differentiation must be a price premium. We conclude with the following: Differentiation is when a firm/brand outperforms rival brands in the provision of a feature(s) such that it faces reduced sensitivity for other features (or one feature). Through not having to provide these other features the firm has an avenue to save costs… 


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