Product differentiation describes registered differences in product characteristics. only occurs when there is brand loyalty. provides an advantage in the market. is usually nonexistent.

Product differentiation I believe provides an advantage in the market, for example I used to purchase some pvc pipe for horizontal drainhole drilling at a large open pit mine from a supplier in Washington state. Then I found out that the same type of pipe was also available from within Canada at a cheaper rate, firstly at a fairly far location, and later at a much closer location, so therefore I finally bought it at the much closer location and at the same time made a "Buy Canadian" policy.