Some Timex wristwatches can be purchased for less than $30; some Rolex wristwatches carry a price tag of several thousand dollars.In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive.The Rolex brand tends to be perceived as an expensive status symbol.Timex watches can be purchased in drug stores, discount stores, and department stores in all sizes of communities.Rolex watches are distributed more selectively, and are often available only in fine jewelry stores or specialty shops.By using distinctly different pricing and distribution strategies, the marketers of Timex and Rolex watches have attempted to
A)compete for the same segment through different channels of distribution.
B)develop similar products under different names.
C)use a product differentiation strategy.
D)build customer loyalty through direct competition.
E)create cognitive dissonance in consumers who are considering the purchase of a wristwatch.

Question

Quizplus · Accepted Answer

The marketers of Timex and Rolex watches have used a product differentiation strategy by creating distinctly different pricing and distribution strategies. Timex focuses on being dependable, relatively accurate, and inexpensive, while Rolex focuses on being an expensive status symbol. This allows each brand to appeal to a different target market with different needs and desires.

Some Timex Wristwatches Can Be Purchased for Less Than $30;