Distinctions between products in the same market based on different attributes the products hold. This distinction can be both positive and negative.
Product differentiation can be a method of competitive dominance. However if this research into the market results in altering a product to affect improvement, these changes are not the product differentiation. Product differentiation is the method of characterising the differences between products or services, or the subsequent record of differences. This is implemented to demonstrate the specific aspects of a company’s product and develop a perception of value.