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In business literature, '''commoditization''' is defined as the process by which [[good (economics)|goods]] that have [[Value (economics)|economic value]] and are distinguishable in terms of attributes (uniqueness or [[brand]]) end up becoming simple [[Commodity|commodities]] in the eyes of the market or [[consumer]]s. It is the movement of a market from differentiated to undifferentiated price competition and from [[Monopoly|monopolistic]] to [[perfect competition]]. Hence, the key effect of commoditization is that the pricing power of the manufacturer or brand owner is weakened: when products become more similar from a buyer's point of view, they will tend to buy the cheapest.
This is not to be confused with [[commodification]], which is a Marxist term for things being assigned economic value which they (according to Marxist theory) did not previously possess, by their being produced and presented for sale, as opposed to personal use.<ref>{{cite web |url=http://rushkoff.com/2005/09/04/commodified-vs-commoditized/ |title=Commodified vs. Commoditized |accessdate=2008-07-21 |last=Rushkoff |first=Douglas |authorlink=Douglas Rushkoff |date=2005-09-04}}</ref> One way to summarize the difference is that commoditization is about proprietary things becoming generic, whereas commodification is about nonsaleable things becoming saleable. In social sciences, particularly [[Cultural Anthropology|anthropology]], the term is used interchangeably with [[commodification]] to describe the process of making [[Commodity|commodities]] out of any thing that
==References==
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