Product differentiation is further beneficial because it tilts the purchasing decision of the customer in your favor (Dickson 1987). Many factors go into this decision which carries different weights. Many are thought to choose simply on the basis of emotional appeal, which is where advertising comes into play.
Differentiating thus makes consumers perceive that the product provides unique benefits which makes customer buy it more. Caution needs to be applied as to how far this can be taken because if it is made to appear too different, consumers may not rate it in the category they are evaluating for their purchasing decision. For example, electric cars are not bundled together in the category of normal cars and hence this hinders their purchase to some extent (Dickson 1987). Thus all these factors if properly viewed and analyzed can tip the purchasing decision in your product’s favor and result in increased sales and more percentage of the market share. As Coca Cola has been able to retain that, it speaks for the importance of product differentiation by the company.