Use the following to answer the questions.
GE Transportation produces locomotive engines for sale in countries around the world. After looking at the total market for locomotive engines, the company found that various rail lines wanted different types of engines. Major rail lines in the U.S. and South America wanted engines to haul heavy freight. Rail lines in Sweden and Germany were interested in a cleaner, greener locomotive engine. Rail lines operated by several Eastern European countries wanted locomotive engines for running short distances between cities in their own country. GE Transportation is currently manufacturing its GE 4400 for heavy freight, its Hybrid Eco-Engine, and its Dash 9, suited for shortline transport.
Refer to Scenario 5.2. GE Transportation is most likely using a(an) ______ targeting strategy, segmenting by ________ variables.
A) Undifferentiated; benefit expectations
B) Differentiated; benefit expectations
C) Differentiated; volume usage
D) Concentrated; volume usage
E) Concentrated; geographic location

Question

Quizplus · Accepted Answer

GE Transportation is using a differentiated targeting strategy, as they have identified different segments (major rail lines in different regions) and are producing different types of locomotive engines to meet their unique needs (heavy freight, cleaner and greener, shortline transport). The segmentation is based on benefit expectations, as the different segments want engines that can perform specific tasks or have specific characteristics.

Use the Following to Answer the Questions