Whats the difference between a branded product and a commodity?
Products fall into two categories: Brands and commodities. Commodities are products that customers cant differentiate from one another because they all seem to serve the same need, solve the same problem, and deliver the same value. If people cant see a clear reason to buy one product over another if they think that all available products deliver the same value and quality theyll view all the products as commodities and buy whatevers available at the lowest price. Branded products are the opposite of commodities. When a product becomes known for compelling characteristics that consumers believe make it different and better than other offerings in the product category, the product becomes a consumer brand that wins buyer preference and premium pricing.
