Key characteristics of differentiated products include:

1. Unique Features: Differentiated products have specific attributes that set them apart from competitors' offerings. These can include design, technology, functionality, or any other feature that adds value.
2. Branding and Image: Strong branding and marketing can create perceived differences even when physical differences are minimal. This can foster brand loyalty and enable firms to charge premium prices.
3. Quality and Performance: Variations in quality and performance can lead consumers to prefer one product over another, based on their individual needs and preferences.
4. Customer Service and Support: Enhanced customer service, warranties, and after-sales support can differentiate products and influence consumer choices.

Examples of differentiated products include:

• Consumer Electronics: Smartphones from different brands (e.g., Apple, Samsung) offer unique features and designs.
• Automobiles: Cars from different manufacturers vary in style, performance, features, and brand image.
• Food and Beverages: Products like coffee or soft drinks differ in flavor, packaging, and branding (e.g., Starbucks vs. Dunkin', Coca-Cola vs. Pepsi).

Markets for differentiated products often exhibit monopolistic competition, where many firms offer products that are not perfect substitutes. This allows firms to have some degree of pricing power and to compete on factors such as innovation, quality, and marketing rather than solely on price.