The factor that most influences competitive differentiation is:

The factor that most influences competitive differentiation is the product's unique features or benefits. This is because differentiation is fundamentally about how a product stands out from its competitors in the eyes of consumers. When a product offers unique features, benefits, or attributes that are not available in competing products, it gives customers a compelling reason to choose that product over others. Unique features can create added value, attract a specific target market, and contribute to brand loyalty, all of which are essential for sustained competitive advantage.

In contrast, while the price of the product is important, pricing strategies alone do not ensure differentiation. A product that is cheaper than competitors may achieve sales in the short term, but it lacks the sustainable differentiation that unique features provide. The size of the market can impact overall business strategy but does not define how well a product can differentiate itself. Similarly, the experience of the development team is significant for the quality and innovation of a product, but it is the unique features and benefits that are most visible and impactful to consumers looking for choices in the marketplace.

Thus, focusing on what makes a product unique is crucial for establishing a strong market position and effectively differentiating it from the competition.