Product differentiation
Most people think that companies differentiate their products to be able to charge more for their product. This is a very simpliticx view, that does not cover all aspects. If customers like what the firs has to offer, they will be less sensitive to the offers of other compamies. Price may not be one of these aspects. Differentiation makes customers in a given segment have a lower sensitivity to other features (non-price) of the product.