Two candy bar makers sell a chocolate bar that contains coconut and almonds. One company is a well-known national brand name, while the other is a small local candy company that has been marketing its local roots extensively. A customer who likes to support local businesses and is familiar with the local brand chooses the local company’s bar and doesn’t mind paying $.50 more for it. This is an example of the local company having a:

Explanation: A competitive advantage is any characteristic of a company, which differentiates it from others by placing it in a superior relative position to compete. That is, any attribute that makes it more competitive than the others. It is said that a company has a competitive advantage in product differentiation when it offers a product or service that, being comparable to that of another company, has certain attributes or characteristics that make it perceived as unique by customers. Therefore, customers are willing to pay more to get a product from one company than from another.