Differentiation (economics)

Differentiation in economics is when a business tries to make their product or service unique or different from their competitors. It’s like when your mom makes your favorite cookie recipe, but adds extra chocolate chips so that it’s different from your friend’s mom’s cookie recipe.

A business will differentiate their product or service by adding special features, unique designs, or even changing how they market it. This makes their product stand out from the others on the market and can help them sell more.

For example, if you’re at the store and you see two different brands of toothpaste, they might look similar but one might say it’s better for sensitive teeth or has fluoride while the other doesn’t. This is differentiation.

In conclusion, differentiation is when a business makes their product different and unique from other similar products in the market, in order to attract more customers and sell more.