Many SUVs come with AWD but rarely come with FWD/RWD but with LSD (limited slip differential).
They don't need to. All but the most basic modern 4WD SUV's will have fairly sophisticated (compared to LSD) traction control which sends drive to whichever wheel needs it. This is much more useful and effective in most situations for most drivers.
Am I correct to say FWD/RWD with LSD is as effective as AWD?
No, if it was, rally cars wouldn't have moved from RWD (with LSD) to 4WD. In its very first rally outing, still an unofficial entry at this stage, the Audi quattro finished nearly half an hour(!) in front of the official winner (RWD + LSD).
By AWD means where rear wheels come into play when sensing front wheels lost traction, which excludes proper 4WD with transfer case and locking diffs.
I wouldn't get hung up this as the two terms mean the same to most folk. Cars have 4 wheels, therefore if all are driven (AWD) it means the car is 4WD, which in turn also means it is a 4x4. If you want to know what kind od 4WD system a particular car has, look into the specs of that car, not whether it is labelled AWD, 4WD, or 4x4.
How manufacturers determines when to put LSD vs AWD?
Most manufacturers are not going to bother with an LSD when modern electronic traction control systems do a better job for less cost and give better efficiency. But if a car is aimed at a particular kind of driver, analogue, old school, hardcore, a mechanical LSD would appeal to them. For the vast majority of drivers, they just wouldn't care (and neither should they)
Is LSD vs AWD decision is an engineering one or marketing one?
Marketing (see above).
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