Developing New Products and Services

CHAPTER 5

Examples of Product Differentiation and Versioning Curves

In this chapter, more examples of product differentiation and versioning curves are presented. As noted earlier, the purpose of the product differentiation curves (PD curves) or versioning curves is primarily conceptual. However, the underlining rationale behind the curves is to generate more revenue and to provide a foundation for conducting economic experiments on what features attracts consumers. In essence, introducing multiple versions of a product permits a company to experiment and observe economic behavior in action. The company can monitor purchase behavior and determine ...