What is product differentiation, why is it important, how can airline differentiate its product (for example, American

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What is product differentiation, why is it important, how can airline differentiate its product (for example, American Airlines)?

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Product Differentiation Product differentiation refers to the strategy of making a product or service distinct from others in the market This can be achieved through various means such as unique features quality design branding or customer service The goal is to create a competitive advantage by offering something that stands out and appeals to the target market Importance of Product Differentiation Competitive Edge It helps a company stand out in a crowded market providing a competitive edge over rivals Brand Loyalty Unique features and offerings can foster brand loyalty as customers identify and appreciate the distinctive characteristics of a product or service Market Positioning Product differentiation allows a company to position itself in the market based on specific attributes attracting a particular segment of customers Premium Pricing Unique and highquality products can often command premium prices leading to increased profitability Airline Product Differentiation Example American Airlines Airlines including American Airlines differentiate their products through various means to attract and retain customers Here are some strategies they might employ Cabin Classes Offering different cabin classes such as Economy Premium Economy Business Class and First Class provides passengers with a range of options based on their preferences and budget InFlight Amenities Providing unique inflight amenities such as WiFi entertainment systems and comfortable seating can set an airline apart Airport Lounges Exclusive lounges with premium services for certain passengers such as frequent flyers or premium cabin passengers contribute to product differentiation Frequent Flyer Programs Loyalty programs with perks like free upgrades priority boarding and extra baggage allowances can enhance the overall travel experience and encourage customer loyalty Special Services Offering special services such as pet transportation onboard special meals and assistance for passengers with specific needs can differentiate an airline as customerfocused Route Network A comprehensive and unique route network including exclusive destinations or convenient connections can be a ...View the full answer

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PALASH JHANWAR

I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details. PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing

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