The impact of product differentiation on consumer preference: An evaluation of a luxury brand in Kano
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Background of the study
Product differentiation is a strategy that involves creating distinct product attributes to distinguish a brand from its competitors. In Kano, a luxury brand has implemented product differentiation through unique designs, superior craftsmanship, and exclusive features aimed at appealing to discerning consumers. This differentiation strategy is integral to building a premium brand image and enhancing consumer preference (Aminu, 2023). Luxury brands rely on differentiation to justify higher price points and to foster emotional connections with consumers, which are critical for driving loyalty and long-term success (Okafor, 2024). Research indicates that effective differentiation can lead to increased consumer preference and market share, as it creates a distinct value proposition that resonates with target audiences (Chukwu, 2025). Despite these advantages, there is limited empirical evidence on how specific differentiation strategies impact consumer preference in the luxury segment. This study evaluates the impact of product differentiation on consumer preference by examining consumer perceptions, purchase behavior, and brand loyalty within a luxury brand in Kano.
Statement of the problem
Although the luxury brand employs product differentiation strategies, its direct impact on consumer preference remains uncertain. Consumers may appreciate unique features; however, if these differentiators are not effectively communicated, the brand may fail to capture the desired market segment (Aminu, 2023). Furthermore, intense competition and evolving consumer tastes may undermine the effectiveness of differentiation efforts (Okafor, 2024). This study seeks to address these issues by investigating the relationship between product differentiation and consumer preference, aiming to identify which elements are most influential in driving consumer choice and brand loyalty (Chukwu, 2025).
Objectives of the study:
To assess the impact of product differentiation on consumer preference.
To identify key differentiating factors that influence consumer choice.
To recommend strategies for optimizing differentiation in the luxury segment.
Research questions:
How does product differentiation affect consumer preference for a luxury brand?
Which product features are most critical in influencing consumer choice?
How can luxury brands enhance differentiation to improve consumer preference?
Significance of the study
This study is significant as it provides insights into how product differentiation drives consumer preference in the luxury sector. The findings will help luxury brands in Kano refine their differentiation strategies to better meet consumer expectations, increase loyalty, and enhance market positioning. The research contributes to academic literature on brand differentiation and offers practical recommendations for achieving a sustainable competitive advantage in high-end markets (Okafor, 2024).
Scope and limitations of the study:
The study is limited to a single luxury brand in Kano, Nigeria, focusing on product differentiation and its impact on consumer preference. Results may not be generalizable to other sectors or geographic areas.
Definitions of terms:
Product Differentiation: Strategies used to distinguish a product from competitors through unique features.
Consumer Preference: The tendency of consumers to favor one product over others based on perceived benefits.
Luxury Brand: A brand that offers high-end, exclusive products with premium quality and pricing.
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