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 jewellery 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.
B)develop similar products.
C)use a product differentiation strategy.
D)build customer loyalty through direct competition.

Question

Quizplus · Accepted Answer

The marketers of Timex and Rolex watches have used product differentiation strategy as they have differentiated their products based on the price and distribution strategies. Timex is positioned as an inexpensive and dependable brand, whereas Rolex is positioned as an expensive and prestigious brand. They have different target markets and distribution channels, which helps them differentiate their products and appeal to different consumer segments.

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