Product Differentiation Research Articles

Insider imitation with product differentiation

Insider imitation with product differentiation

Balancing storage cost and customization time in product platform design: a bi-objective optimization model

Abstract In the modern market scenario governed by the Mass Customization paradigm, the so-called delayed product differentiation (DPD) rose as a production strategy best balancing traditional Make-to-Stock (MTS) and Make-to-Order (MTO), potentially reducing storage cost and customization time. In industry, DPD uses product platforms, defined as a set of components forming a common structure, from which a stream of derivative variants is produced. Early-stage platforms, made of few components, limit their storage cost, increasing the time to customize and turn them into final variants. The literature widely discusses the product platform design problem, asking to explore quantitatively the trade-off between platform storage cost and customization time. This paper contributes to applied research in mass customization, proposing and applying a bi-objective optimization model able to assign the most suitable production strategy to each product variant among MTS, MTO, and DPD. In the case of DPD selection, the model designs the product platforms best balancing storage cost and customization time as the target metrics to optimize, subject to industrial constraints to produce and store them, matching each variant to the most suitable platform. A case study adapted from the electronic components sector exemplifies the use of the bi-objective model, supporting companies in managing high-variety mixes.

Brand Image, Service Quality, and Product Differentiation: Building Customer Satisfaction

Brand Image, Service Quality, and Product Differentiation: Building Customer Satisfaction

Business Strategy Development Of Salted Fish Msmes Based On Business Model Canvas In Malabero Village, Bengkulu City

Salted fish Micro, Small, and Medium Enterprises (MSMEs) in Malabero Village, Bengkulu City, play a significant role in the local economy. However, these businesses face challenges such as limited market reach, lack of innovation, inefficient production processes, and weak financial management. This study aims to analyze the current business model of salted fish MSMEs using the Business Model Canvas (BMC) framework and propose strategic improvements to enhance their competitiveness and sustainability.The research employs a qualitative approach, including field observations, interviews with business owners, and document analysis. The findings indicate that most MSMEs rely on traditional sales channels, lack product differentiation, and have minimal digital marketing adoption. To address these issues, this study suggests several strategic developments: (1) market expansion through digital platforms and retail partnerships, (2) product innovation with better packaging and value-added variants, (3) adoption of modern processing technologies to improve efficiency, and (4) improved financial management and access to funding.By implementing these strategies, salted fish MSMEs in Malabero Village can strengthen their market position, increase profitability, and ensure long-term sustainability. The study provides practical recommendations for business owners, policymakers, and industry stakeholders to support the growth of the salted fish sector in Bengkulu City.

Cartel stability under antitrust enforcement and product differentiation

ABSTRACT This paper investigates cartel stability under antitrust enforcement and product differentiation – pricing cartel. We do not observe a clear relationship between the degree of product differentiation and cartel stability. However, antitrust enforcement makes a more significant impact on cartel stability when products are highly differentiated. In other words, under antitrust enforcement, firms have greater incentives to collude when products are close substitutes.

Product differentiation, demand expansion and the welfare effects of cross‐ownership

AbstractWe show the effects of cross‐ownership on product differentiation, consumer surplus and welfare under Cournot and Bertrand competition. Under Cournot competition, cross‐ownership increases (decreases) product differentiation if demand expansion following product differentiation is large (small). Under Bertrand competition, cross‐ownership may increase or decrease product differentiation regardless of the demand expansion effect of product differentiation. Cross‐ownership may increase consumer surplus and welfare under both Cournot and Bertrand competition. Demand expansion following product differentiation and the type of product market competition play important roles for the effects of cross‐ownership in an industry with endogenous product differentiation. We also show that Cournot competition may create higher consumer surplus and welfare compared with Bertrand competition.

Play it Again, Sam? Reference-Point Formation and Product Differentiation in the Music Industry

Newly released music is never assessed in isolation by audiences, who tend to compare objective (sonic attributes) and subjective (genre affiliations) elements of its identity with the previous musical catalog of the corresponding artist, his or her musically proximal peers, and the most successful releases in the market. In this paper, we provide a general framework that disentangles the objective and subjective identities of new musical releases and evaluates how differentiation affects audience reactions. We posit that radio stations, who seek commercial success, have different preferences toward differentiation in comparison with critics, who grant cultural legitimacy in the industry. Combining play numbers, reviews, and music description data from different sources, we find that radio stations prefer consistency in the musical style of successive releases by the focal artist and especially favor albums that sound similar to chart toppers. Critics, however, exhibit opposite preferences, preferring novelty compared with past works of the artist, while remaining uninfluenced by contemporaneous music dynamics. Our moderation checks reveal that decisions around genre affiliations and scheduling of new releases aid music producers to effectively manage audience expectations. This suggests that data-driven decision support systems can help artists to strategically release new products that cater to heterogeneous tastes. This paper was accepted by David Simchi-Levi, entrepreneurship and innovation. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2022.03319 .

Spatiotemporal Evolution and Driving Mechanisms of Non-Grain Production Rate of Planting Structure in Jilin Province from the Perspective of Grain Security

Grain security is the foundation of national security, and non-grain production of cultivated land (NGPCL) poses a challenge to grain security. Existing research on the NGPCL has mainly focused on large-scale studies, with relatively few analyses at smaller scales, such as county-level units. Therefore, we selected Jilin Province, one of China’s most important grain-producing areas, as the study region. We extracted data on NGPCL from 2000, 2005, 2010, 2015, and 2020, and calculated the non-grain production rate of cultivated land for each of the province’s counties. Based on this, we used the gravity center and standard deviation ellipse models, and spatial autocorrelation analysis tools to reveal the spatiotemporal evolution characteristics of the non-grain production rate of the planting structure (NGPRPS) in Jilin Province. Finally, we applied the geographic detector to analyze the impact of 10 factors on the changes in the NGPRPS. The results show that: (1) From 2000 to 2020, the NGPRPS in Jilin Province generally showed a downward trend, which can be divided into three phases: fluctuation, decline, and an initial increase followed by a decrease. (2) There is a clear spatial differentiation in the non-grain production of planting structure (NGPPS) in Jilin Province, with the spatial pattern being generally low in the center and higher at the periphery. In the early stage, the non-grain production rate (NGPR) increased rapidly, while in the later stage, the spatial distribution of NGPPS became more pronounced in the southeastern direction. (3) In the short term, policy factors played a significant role in the changes in the NGPRPS. In the long term, however, natural environment, production resources, economic level, and social development showed interactive effects on the changes in the NGPR in the region. Based on these findings, the government can adopt corresponding measures and management policies considering the impact of these factors, the research results, and the proposed strategies. These include the rational implementation of land use planning, delineating the baseline for cultivated land protection, and controlling the use of cultivated land.

Strategi Bisnis Unit dalam Pendekatan SWOT untuk Meningkatkan Daya Saing di Pasar Global

This research aims to analyze the business unit's strategy in facing dynamic market competition. The focus of the research is to identify internal and external factors that affect the performance of the business unit and evaluate the effectiveness of the strategies implemented. The research used a qualitative approach with a case study method on one of the business units in a particular sector, such as manufacturing or technology. Data was collected through in-depth interviews with business unit managers, analysis of financial statements, and literature review. The results showed that the strategies of product differentiation, operational optimization, and adaptation to technology were key elements to improve the competitiveness of the business unit. SWOT analysis revealed key strengths, such as product innovation capabilities, but also indicated threats from the emergence of new competitors. The study emphasizes the importance of synergy between strategic vision, innovation, and efficiency in supporting business sustainability. The study provides strategic recommendations for other business units looking to improve their competitiveness in the global market. The findings suggest that the right strategy can help businesses be more adaptive to market dynamics and maintain relevance in an increasingly competitive era.

PTR-ToF-MS VOC Profiling of Raw and Cooked Gilthead Sea Bream Fillet (Sparus aurata): Effect of Rearing System, Season, and Geographical Origin.

This study explores the impact of geographical origin, harvest time, and cooking on the volatile organic compound (VOC) profiles of wild and reared seabream from the Adriatic and Tyrrhenian Seas. A Proton Transfer Reaction-Time of Flight-Mass Spectrometry (PTR-ToF-MS) allowed for VOC profiling with high sensitivity and high throughput. A total of 227 mass peaks were identified. Principal component analysis (PCA) showed a clear separation between cooked and raw samples, with cooking causing a significant increase in 64% of VOCs, especially hydrogen sulphide, methanethiol, and butanal. A two-way ANOVA revealed significant effects of origin, time, and their interaction on VOC concentration, with 102 mass peaks varying significantly based on all three factors. Seasonal effects were also notable, particularly in reared fish from the Adriatic Sea, where compounds like monoterpenes and aromatics were higher during non-breeding months, likely due to environmental factors unique to that area. Differences between wild and reared fish were influenced by lipid content and seasonal changes, impacting the VOC profile of seabream. These findings provide valuable insights into how cooking, geographical origin, and seasonality interact to define the flavour profile of seabream, with potential applications in improving quality control and product differentiation in seafood production.

Startup Survival Forecasting: A Multivariate AI Approach Based on Empirical Knowledge

Predicting the survival of startups is a complex challenge due to the multifaceted nature of entrepreneurial ecosystems and the dynamic interplay of internal and external factors. Despite advances in empirical research, existing models often lack integration with robust conceptual frameworks. This study addresses these gaps by developing a multivariate AI-driven model for predicting startup survival, leveraging Lipschitz extensions, neural networks, and linear regression. Using a dataset of 20 startups, selected across diverse industries and evaluated on attributes such as team dynamics, market conditions, and financial metrics, the model demonstrated high accuracy and clustering capabilities. Key findings highlight the pivotal role of team dynamics and product differentiation in determining survival probabilities. By integrating conceptual insights with empirical data, the study bridges gaps in existing literature and offers a practical decision-making tool for entrepreneurs, investors, and policymakers. These findings underscore the importance of fostering collaborative, innovative ecosystems to enhance entrepreneurial success and societal well-being.

Pricing and Procurement Strategies for Substitute Products in Extreme Weather

ABSTRACTClimate change is causing frequent extreme weather events, posing disruption risks to supply chains. A two‐echelon supply chain comprising two suppliers and one retailer is constructed from a risk perspective. A game theory model is utilized to analyze all parties' optimal decisions and risk management measures under climate disturbances. The reactions of the retailer and suppliers, who sell vertically differentiated substitute products, are examined, and the changes in social welfare are observed. Our analysis exhibits that (1) the retailer mitigated the negative impact of risk disturbance through product differentiation and pricing strategies and even achieved higher profits than without extreme weather events; (2) there is a possibility that the sales volume will be higher in extreme weather, which is related to the antidisturbance ability of the supply chain; and (3) although extreme weather disturbs the supply, it may lead to a win–win relationship between retailer's profit and social welfare. The operational decisions derived from this study exhibit robustness in mitigating the adverse effects of extreme weather, enabling maximization of both retailers' profits and social welfare, thus contributing to the theoretical foundation for sustainable socioeconomic systems.

Examination of Strategic Planning of Banks to the Context of India

Aim: This research is a modest effort to explore strategic analysis tools and growth aspects of the Indian banking sector. The objective of this research is to assess bank employees’ perceptions current stage of banks and identify sustainable growth strategies for the future. Study Design: I purposively selected Andhra Pradesh, and Telangana states. Multi-stage sampling (MSS) used for data collection. Statistical tools such as Correlation and Regression analysis, and Balance score-card were performed using advanced Excel. Financial ratios include DuPont model (Asset Turnover, Profit Margin, Return on Equity-ROE, and Return on Assets-ROA), were calculated. Methodology: The study analyzing a combination of financial ratios and employing strategic tools, to evaluate the sector’s progress. Primary data was collected from the employees in the banking sector, secondary data were obtained from research articles, and magazines. The total samples covered are 50. Findings and Results: The past two decades, the industry has transitioned from offering subsidized services with limited facilities to becoming more competitive. Key focus areas include achieving global standards like the Capital Adequacy Ratio (CAR), reducing liability and servicing costs, and fostering product differentiation. ‘P’ value 0.370, there is no significant relationship between net banking and UPI transactions, and ‘r’ value 0.938, therefore there is a highly positive correlation between them, and so to increase the growth of the banking sector, a focus on enhancing net banking and UPI transactions is recommended to achieve the target. The adjusted R-square value is 82.70; therefore, 82% of the variance of the dependent variable is explained by the independent variable in regression analysis. Y=a+bx: Positive intercept in banking transactions suggests baseline activity regardless influencing factors. Negative slope means factors like features, services, size of transactions, and volume might decrease. Policy Recommendations: Enhance resource utilization, global standards compliance, product differentiation, strategic implementation and cost management.

Tantangan Industri di Indonesia dan Strategi Penjualan melalui Diferensiasi dan Advertensi

This research aims to analyze the industrial challenges faced by small and medium enterprises (SMEs) in Indonesia and explore sales strategies through differentiation and advertising to improve business performance. Using quantitative methods, this research involved 100 respondents consisting of SME entrepreneurs in various industrial sectors in Indonesia. Data was collected through questionnaires and analyzed using regression analysis techniques to test the influence of these variables on sales performance. The research results show that industrial challenges such as limited access to technology and capital have a negative effect on SME performance, while product differentiation and digital advertising strategies are proven to increase the competitiveness and sales performance of SMEs. This research also contributes to the understanding of the importance of innovation in products and effective marketing to face competitive market challenges. The practical implication of this research is the need to increase investment in product innovation and digital marketing to strengthen the position of SMEs in the market. This research also provides recommendations to the government to provide support in the form of policies that facilitate access to technology and capital for SMEs.

A study of the Impact of AI and New Media on Trade Development in the Retail Sector and Coping Strategies

The rapid advancement of global information technology is transforming industries at an unprecedented pace, with emerging technologies becoming integral to our daily lives and reshaping traditional business models. The retail industry, in particular, has witnessed a significant evolution over the past three decades. What once relied solely on face-to-face interactions has now shifted through the e-commerce revolution and into a highly sophisticated model powered by artificial intelligence (AI) and big data. These technological breakthroughs have redefined the retail landscape, enabling businesses to harness data-driven marketing strategies and leverage the growing influence of social media for promotion. As a result, geographical barriers are no longer a limitation, and retailers can reach a global audience with ease. However, this transformation also brings new challenges, such as increased competition and the need for product differentiation in a crowded marketplace. The evolution of retail not only reflects the broader impact of global technological advancements but also highlights the opportunities and complexities of operating in the digital age. By exploring these cutting-edge technologies, this paper can better understand the forces shaping modern retail and gain valuable insights into this rapidly changing era.

Research on the Problems and Optimization of Marketing Strategies of Chinese Hot Pot Restaurants

With the continuous development of society, the popularity of hot pots in China remains strong, but the market faces several challenges. This paper aims to analyze the marketing strategies of the Chinese hot pot industry, focusing on both historical trends and contemporary approaches. It begins by outlining the current state of the market, discussing the evolution of hot pots and key marketing strategies adopted in recent years. Haidilao, a standout player in the industry, is used as a detailed case study, with emphasis on its exceptional customer service and innovative marketing techniques. Despite its success, the hot pot market faces three critical challenges: intense market competition, overly standardized marketing and product offerings, and a lack of innovation in ingredients, which raises concerns about food safety. This paper delves into the root causes of these issues and proposes actionable recommendations for addressing them. Solutions include enhancing product differentiation, adopting more diverse marketing approaches, increasing innovation in menu offerings, and improving food safety measures to sustain long-term growth in the hot pot industry.

Analysis of Marketing Strategies for New Products

Choosing the marketing strategy analysis of a new product as a topic is an interesting and practical option. It will not only help me to understand consumer behavior and psychology, but also help me to study market research and positioning. As well as exploring branding and communication strategies at a deeper level. The purpose of this thesis is to analyze the marketing strategy of a new product and explore its positioning and promotion effect in the market competition. First, the target market and product differentiation advantages are identified through market research and consumer demand analysis. Then, the choice of multiple marketing channels is examined, including online and offline advertising, social media promotion, KOL cooperation, and content marketing. The paper also evaluates the impact of pricing strategies, promotional activities, and brand positioning on consumer purchase decisions. Ultimately, case studies and data analysis validate the effectiveness of the selected strategies and suggest further optimization to increase market share and brand awareness.

Food labelling and Chinese consumer preference for naturalness - A new way to differentiate grass-fed dairy products.

Due to the lack of recognized differentiation for grass-fed dairy products, producers of quality products have failed to capture consumer premium. This study investigates Chinese consumers' preference for the naturalness attributes of grass-fed dairy products as potential criteria for product differentiation of grass-fed milk. We examine how grazing conditions (e.g., pasture grazing), animal feed (e.g., fed grass), functional improvement (e.g., increase the content of CLA, Omega-3 and Vitamin B), and imagery property (healthy, natural, tasty, and sustainable) affects consumers' preference and willingness to pay. Interestingly, consumers reported higher premiums for grazing conditions, animal feed, and functional improvements compared with imagery property attributes. Contrary to the conventional belief that functional improvement attracts the highest consumer premium, we found that for the majority of respondents (who have high preference for naturalness), grazing conditions were the most important factor. This study provides evidence on consumer preferences for the sub-attributes of grass-fed products, and therefore develops a potential framework to differentiate grass-fed products using naturalness criteria.

Leveraging artificial intelligence for competitive advantage: a case study of Samsung

The author examines how it is possible to use artificial intelligence to the advantage of an organization that operates in the technology industry. The main focus of the research was to identify how effectively and in what ways Samsung used AI technologies in its smart phones and home appliance product segments to improve functionality and usability as well as operational effectiveness. This was to have been achieved through the use of Artificial Intelligence in manufacturing processes as well as in various ways to deliver unique customized services to customer unlike the rival companies. This work also shows how Bixby, Samsung’s own AI assistant or smart IoT solutions all help towards creating a smarter environment, thereby building goodwill for the brand and generating additional revenue streams. The study further shows how Samsung supports that the application of AI can enhance a firm’s competitive position by pushing product differentiation, monitoring and anticipating equipment wear and tear and making better decisions from analyzed data.

Analisis dan Rancangan di PT Honda

This article describes the analysis and development strategy at PT Astra Honda Motor, one of the leaders of the Indonesian two-wheel industry. This article uses SWOT analysis and Porter's Five Forces model to examine the strengths, weaknesses, opportunities and threats facing the company. PT Astra Honda Motor is known for its product quality and strong brand image, but faces challenges from competitors such as Yamaha. Strategic design includes product differentiation, design innovation, and price adjustments to maintain market share.