Final answer:
Making a product stand out among competitors through unique design, identity, and image is called branding, and the statement is true. Branding is essential for product differentiation and can help to achieve customer loyalty and market dominance.
Step-by-step explanation:
Making a product stand out among competitors on the market is indeed referred to as branding, so the answer to the student's question is a) True. Branding is the process of creating a unique name, design, and image that identifies and differentiates a product from other products. A strong brand can influence buyers' perceptions and can be a strong driver of customer loyalty. For instance, effective branding has allowed companies like Coca-Cola and Pepsi to dominate the fizzy drink market, making it difficult for new competitors to match their brand recognition and marketing presence. This scenario illustrates how product differentiation is crucial in not just monopolistic competition, but also in establishing an oligopoly where few businesses hold the majority market share. Effective branding goes beyond just the visual elements; it encompasses the overall perceived value of the product, including quality, reliability, and the emotional connection with consumers. Infusing a product with an identity helps it to stand out on the market and is a key to success in a competitive business environment.