Sources of differentiation

Tangible sources of differentiating a companies customer value proposition are:

• Product/service quality
  • Functionality
  • Durability
  • Reliability
  • Ease of installation
• Degree of product/service customization
  • The more a product can be adapted to specific needs, the more benefits it creates for an individual user
• Convenience
  • The energy, effort and time that buyers have to spend during purchasing is an important factor.
• Speed of delivery
  • The ability to quickly deliver is an important customer benefit
• Product range
  • A broad and deep selection provides an important source of differentiation. Also remind The Long Tail.

Intangible sources:

• Brand
  • The brand refers to the perceived traits that consumers associate with the company that is selling a product or a service.
• Reputation
  • The perceived past performance of a company is a major factor influence reputation. Customers value reputation as they believe it will reduce risk.

See also: Consumption chain

Part of M8-S2 - Reading - Strategies for E-Business - Chapter 5 - Strategy options