IDEAS home Printed from https://ideas.repec.org/a/srs/jarm00/v8y2017i2p95-111.html

The Mechanism behind Product Differentiation An Economic Model

Author

Listed:
  • Taiji HARASHIMA

    (Department of Economics Kanazawa Seiryo University Japan)

Abstract

The strategy of product differentiation has been viewed as very important in the field of business administration but it has not necessarily been viewed as an important source of large differences in firms profits in the field of economics In this paper this apparent contradiction is examined based on the concepts of ranking preference and value In the proposed model if a product s implicit rank is higher households will purchase the product far more often than competing products even if their qualities are almost identical and the tastes of households are uniformly distributed Even a slight difference in quality can result in a clear difference in implicit ranks and consequently large differences in firms profits Therefore the effects of differentiation are amplified by ranking preference and product differentiation efforts are truly very important for firms

Suggested Citation

  • Taiji HARASHIMA, 2017. "The Mechanism behind Product Differentiation An Economic Model," Journal of Advanced Research in Management, ASERS Publishing, vol. 8(2), pages 95-111.
    • Handle: RePEc:srs:jarm00:v:8:y:2017:i:2:p:95-111
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Harashima, Taiji, 2019. "Why Is Executive Compensation So High? A Model of Executive Compensation," MPRA Paper 91326, University Library of Munich, Germany.
    2. Harashima, Taiji, 2018. "Superstars in Team Sports: An Economic Model," MPRA Paper 86360, University Library of Munich, Germany.
    3. Harashima, Taiji, 2024. "Economic Utility Obtained from “Sense of Play”: Marketing in Evolution toward “Play-Oriented Economies”," MPRA Paper 122815, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • M37 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Advertising

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:srs:jarm00:v:8:y:2017:i:2:p:95-111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Claudiu Popirlan The email address of this maintainer does not seem to be valid anymore. Please ask Claudiu Popirlan to update the entry or send us the correct address (email available below). General contact details of provider: http://journals.aserspublishing.eu/jarm .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.