3.10 Conclusion

As we have seen in this chapter, product differentiation leads to additional revenues and is the basis for conducting experiments for determining what products and product versions to introduce in the future. We have also discussed how substitute and complementary products and services further drive innovation. Subsequent chapters will explore how product differentiation forms the basis for experimentation, innovation, and product development.

In this chapter, we have illustrated how price discrimination could be applied to Joan’s jewelry box case and optimum prices for product versioning could be derived. The key takeaways include the following: