Some Timex wristwatches can be purchased for less than $30 while 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 selectively distributed in fine jewelry stores or specialty shops in major cities.By using distinctly different pricing and distribution strategies,the marketers of Rolex watches
A)compete for the same segment through different channels of distribution.
B)develop similar products as Timex but under different names.
C)use a differentiation positioning strategy.
D)compete for the same customers through similar retail outlets.
E)create cognitive dissonance in consumers who purchased Timex wristwatches.

Question

Quizplus · Accepted Answer

Rolex uses a differentiation positioning strategy by pricing their watches higher and selecting specific retail outlets to sell their watches. This creates a perception of exclusivity and luxury, which attracts a different market segment than those who purchase Timex watches.

Some Timex Wristwatches Can Be Purchased for Less Than $30