Final answer:
True, designing a product to be perceived as different from competitors is an example of product differentiation. This can be achieved through various means, both tangible and intangible, and is key to making products stand out in the market.
Step-by-step explanation:
True: Designing a product that customers perceive as different from competing products is indeed an example of product differentiation. Product differentiation is any action that firms undertake to make consumers recognize their products as distinct from those of their competitors. There are several methods by which a firm can differentiate its products, including the physical aspects of the product, the location from which it is sold, intangible aspects of the product, and the perceptions of the product.
Differentiated products are those that stand out due to unique features. These features can be tangible, like design and function, or intangible, such as a brand's reputation for high quality, customer service like free delivery, or special guarantees and offers like a money-back promise. Advertising also plays a crucial role in shaping the perceptions and intangible preferences towards products, influencing product differentiation in the minds of buyers.