Final answer:
3. Product differentiation is the increased customer value achieved through performing organizational functions more efficiently by making consumers believe that a firm's products are different from its competitors'.
Step-by-step explanation:
3. Product differentiation is the increased customer value achieved through performing organizational functions, such as marketing, production, and operations, more efficiently. It involves making consumers believe that a firm's products are different from its competitors'.
This can be done by offering friendlier service, free delivery, guarantees of quality, variations on existing products, and a better shopping experience.