Differentiate by quality- depending on the quality there are people who can afford a good quality which is more expensive compared to low quality differentiate by location- for example gas stations differentiate by style or type- as long as people differ in taste producers will ind it more profitable to produce a varierty of products to the market
Representativeness heuristic bias occurs when there are similar events whose probability of occurrence is assumed to be the same. People mistakenly assume there is a close relationship between the two events than there really is.
For example of John is a lawyer, he is judged to be a lawyer because of expression of various traits associated with lawyers.
Kellyanne hired Joshua from Southwest University. Because of his outstanding performance, it is assumed that other considered from Southwest University will also perform outstandingly.
This is a form of representativeness heuristic bias