Literature Review

Product differentiation plays a crucial role in the competitive landscape, and developing theories
around it requires considering several significant constraints. Eaton and Lipsey (2005) identified seven
key facts that shape the development of theories on product differentiation. To create a
comprehensive model, the following elements should be incorporated: (1) a range of potential
products, (2) the associated technology for each product, (3) consumer preferences towards the
available products, and (4) an equilibrium concept. Integrity, defined as being whole, complete, and
sound, serves as the foundation for achieving sustainable competitive advantage in product
development. Products that embody integrity excel in performance, provide excellent value, and
comprehensively meet customers' expectations. This encompasses both tangible and intangible
aspects, including visual appeal, tactile experience, and overall customer satisfaction (Europe PMC,
n.d.). When products possess integrity, they are more likely to establish a strong market presence and
foster long-term customer loyalty. A product can be an item or service that is available for purchase,
existing in physical form or as a virtual or cyber entity. Each product is produced at a specific cost and
sold at a particular price, influenced by market conditions, quality, marketing efforts, and target
audience. Furthermore, products have a defined lifespan and life cycle, necessitating replacement and
reinvention, respectively. In the realm of fast-moving consumer goods (FMCG), brands often undergo
revitalization, relaunching, or expansion to maintain relevance to the target segment and evolving
market demands while maintaining product continuity (The Economic Times, 2023). The development
of a comprehensive model of product differentiation requires acknowledging the constraints
identified by Eaton and Lipsey (2005). By considering a range of potential products, their associated
technologies, consumer preferences, and equilibrium concepts, researchers can gain a deeper
understanding of the dynamics underlying product differentiation. Additionally, maintaining integrity
in product development is crucial for achieving sustainable competitive advantage, as products that
excel in performance and value, while meeting customers' comprehensive expectations, are more
likely to thrive in the market. Understanding the nature of products, their lifecycle, and the potential
for revitalization and expansion provides insights into how brands can remain relevant and
successfully adapt to changing market conditions.

This literature review provides a foundation for understanding the factors influencing product
differentiation and the importance of integrity in product development. By incorporating these
concepts into research and business strategies, scholars and practitioners can enhance their
understanding of product differentiation dynamics and promote the creation of successful and
competitive products in the marketplace.