Posted in Marketing and Strategy Terms, Total Reads: 743
Definition: Relative Advantage
Relative advantage means the degree to which a product appears to be superior to another existing product. It helps to understand whether customers would actually use this product as compared to the already existing competitor's product.
Hence, the greater the relative advantage of a product, the more quickly it is adopted by the users. Let us consider a software company launches its new software. If the product is superior to its other competitors in the market in terms of ease of use, and the software is targeted for those customers who are not that familiar with using such software, the product will be adopted quickly by that particular segment.