Attitudes toward Product Differentiation: A Social Utility Perspective

Product differentiation is examined from the perspectives of economics, marketing, and public policy. A proposed product differentiation hierarchy, using a social welfare method to determine importance of criteria, was tested by surveying FTC staff members, consumerists, and marketing practitioners. Results indicate that product differentiation is not a single concept that can be measured on a continuum, but rather is two separate areas that generally correspond to Chamberlin's original notion.