Commoditization

usgb/kəˌmɑːdɪtaɪˈzeɪʃən/
noun

The process by which goods or services lose their unique qualities and become standardized or viewed as interchangeable.

The commoditization of coffee has made it a staple product worldwide.
Visual representation of "commoditization" - The process by which goods or services lose their unique qualities and become standardized or viewed as interchangeable.

Usage tips

Neutral

market commoditization,commoditization of services,commoditization of assets

Definition 1 of 2
Visual representation of "commoditization"
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Cultural Context

Understanding how commoditization affects local products will help you appreciate their uniqueness.

Illustration for Cultural Context
In recent years, the commoditization of artisanal cheese has raised concerns among purists.
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Industry Insight

Note that commoditization can lead to price wars between companies.

Illustration for Industry Insight
In tech, commoditization of software often results in lower prices but greater competition.
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Emotional Impacts

Recognize that commoditization can dilute brand loyalty among consumers.

Illustration for Emotional Impacts
As products become commoditized, consumers may feel less attachment to individual brands.
Visual representation of the word "Commoditization"

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