1. Rolex divided the market of potential buyers of its watches into: 1) those who have achieved financial success and 2) those who are on the way to achieving financial success. Rolex is practicing;

a. product positioning

b. product differentiation

c. market segmentation

d. target marketing

2. Bungee jumpers are very difficult and costly to identify. No distinguishing characteristics like gender, income, lifestyle, or other sports activity set them apart to enable a firm to market to them without spending excessively. Consequently, many firms ignore this market segment. This is an example of the _________________ criterion to select the appropriate target segment.

a. market size

b. expected growth

c. competitive position

d. cost of reaching the segment

Hermes sells handbags that range from $10,000 to $1,000,000. It justifies its high prices by saying its product is unique and better because it is made from one whole skin unlike other luxury bag makers who uses pieces of skin from several animals to make their bags. Buyers think that the Hermes bag is worth buying. In fact, there is a waitlist for some bags. Which concept does this illustrate?

a. product positioning

b. product diffrentiation

c. market segmentation

d. target marketing

Sports Illustrated uses activities, interests, and opinions of jocks to segment them in order to ensure a high response rate to its marketing efforts. The use of lifestyles as a segmentation variable is illustrative of ________________ segmentation.

a. geographic

b. demographic

c. psychographic

d. behavorial

When Tesla first introduced its electric car, it decided to serve those with high incomes and were environmentally conscious unlike Nissan, which had different kinds of cars for many segments. Tesla was doing:

a. product positioning

b. product differentiation

c. market segmentation

d. target marketing