Final answer:
The properties that are considered important to customers are known as physical aspects of a product. These include features like unbreakable bottles and nonstick surfaces. Reputation is also important to firms as it affects buyers' perception of product quality.
Step-by-step explanation:
The properties that are considered important to customers are known as physical aspects of a product. These aspects include features such as unbreakable bottle, nonstick surface, freezer-to-microwave, non-shrink, extra spicy, newly redesigned for comfort. Additionally, a firm's location can also create a difference between producers.
For example, a gas station located at a heavily traveled intersection can sell more gas because more cars drive by that corner. Similarly, a supplier to an automobile manufacturer may find it advantageous to locate close to the car factory.
Establishing a good reputation is also important to firms. When buyers know that a firm is concerned about its reputation, they are less likely to worry about receiving a poor-quality product. A well-established grocery store with a good reputation can often charge a higher price than a temporary stand at a local farmer's market.