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 distributed more selectively,and are often available only 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

The marketers of Rolex watches are using a differentiation positioning strategy by pricing their products at a high price point and distributing them selectively through fine jewelry stores or specialty shops in major cities. They are not competing for the same segment or customers as Timex through different channels of distribution. They also do not develop similar products as Timex but under different names. Rolex's pricing and distribution strategies are distinct from Timex, creating a high-end image and perceived value as an expensive status symbol. There is no evidence to suggest that Rolex's strategies create cognitive dissonance in consumers who purchased Timex wristwatches.

Some Timex Wristwatches Can Be Purchased for Less Than $30