Companies use product differentiation to stand out in the market and attract socially conscious consumers by highlighting intangible aspects like quality, service, and brand reputation, as well as by influencing consumer perception through advertising.
As goods become more commoditized and consumers grow more socially conscious, some companies incorporate product differentiation as a way to differentiate themselves from competitors, build consumer preferences, and achieve notable sales and profit gains. Product differentiation is any action that firms do to make consumers perceive their products as distinct from their competitors'. There are several ways to achieve this, including intangible aspects such as guarantees of satisfaction, a reputation for high quality, services like free delivery, or offering a loan to purchase the product. Differentiated products can emerge in consumer's minds through past habits and advertising that shape brand preference, even in cases where tangible differences between products are minimal.