5: Product Differentiation and Versioning Curves
In this chapter, the author intends to provide even more examples of differentiation and versioning curves. (EN: This may be a great deal of fluff and filler - I'll keep notes brief.)
Versioning Automobiles
The author presents some curves from a car manufacturer - there are no references to any data source, so it's not clear whether these are accurate, but the principles hold.
Interestingly, there is a two-tiered segmentation system: the Toyota Corolla serves the low end of the market, the Camry serves the middle, and the Avalon the upper end. But there is further subdivision within those major divisions: there is a Carry LE, Camry SE, and Camry XLE.
Versioning Computers
There's a mention of Dell computer, which creates three "models" of computer - Inspiron (budget), XPS (standard) and Alienware (premium) - but then each of these models can be highly customized. One can choose faster or slower processors, more or less hard drive, different levels of video hardware, and so on. The author suggests that this maximizes profit by exhausting customer surplus.
(EN: In other places, it's been suggested that this approach was not for the sake of maximizing the profit potential, but to solve a usability problem with configuring computers: there are too many options, and people fare better when given a choice of a few basic models and then let them customize.)
Other Examples
The chapter contains similar examples in software, wireless services, e-books, video games, and the like. It's repetitive and the examples seem to add nothing more.