IGCSE Travel and Tourism Practice Exam

What is the process called that emphasizes the distinct features of a product that makes it more appealing than competitors?

1. Branding

2. Market positioning

3. Promotion strategy

4. Product differentiation

The correct answer is: Branding

The correct answer is product differentiation. This process involves highlighting the unique aspects of a product that set it apart from competitors, making it more attractive to consumers. By focusing on these distinct features—such as quality, design, or special benefits—companies can create a unique selling proposition that appeals to target audiences and influences purchasing decisions. When a product is differentiated effectively, it helps to establish a stronger market presence and can lead to increased brand loyalty. Ensuring that customers recognize what makes a product unique is crucial in a competitive marketplace where many similar options may exist. While branding involves creating a strong identity for a product or company, it does not specifically focus on emphasizing unique features. Market positioning refers to how a product, brand, or service is perceived relative to competitors, which can encompass differentiation but is a broader concept. Promotion strategy relates to the various ways a product is marketed to consumers, rather than the inherent qualities of the product itself.