Final answer:
Companies use product support services to differentiate their products, especially under competitive conditions or when product qualities are similar. Intangible aspects like satisfaction guarantees or reputations for quality are crucial. Advertising also plays a significant role in shaping consumer preferences.
Step-by-step explanation:
To differentiate their products, companies often highlight product support services as a key factor. This strategy is particularly effective under certain conditions, such as when a company's prices are higher than competitors', when introducing a new product, when consumers are willing to pay for additional support, when all products in the market are perceived to have similar quality, or when a company's product quality may be seen as inferior. By emphasizing intangible aspects such as satisfaction guarantees, reputations for quality, free delivery, loans for purchases, or other supportive services, companies seek to create a unique position for their products in the consumers' minds.
Differentiated Products involve varying strategies beyond just the physical product, including location, intangible aspects, and consumer perceptions. An example of intangible product differentiation is the strong brand preference that exists among consumers, even when they may not discern a taste difference in a blind taste test. This shows the power of past habits and advertising in shaping consumer preferences and the importance of non-physical product attributes in differentiating products in a competitive marketplace.