A New Perspective on the Evolution of Porsche 911 (What is Commoditization?)
A bit of disambiguation…
Commoditization: the negative force exerted on a product’s perceived value that is driven by the accumulation of knowledge about that product in the marketplace
commoditization: the process in which a product’s value and thus the profit per unit drops, as a result of normal business activity / (with every product sold, the knowledge about that product in the marketplace increases)
All products commoditize, but not all become commodities.
A commoditized product is a product with a lower perceived value relative to its original perceived value.
A commodity is a product with a perceived value positioned at the lower end of the entire value spectrum for all of the products in an economy.
A commoditized product may or may not be a commodity. But a commodity is always a commoditized product.
(The term product is used here in a broader sense, covering all types of offerings.)
A more detailed account of this particular understanding of the concept of perceived value is available in Cristian Mitreanu's 2007 paper A Business-Relevant View of Human Nature.