Some Timex wristwatches can be purchased for less than $30 while Rolex wristwatches may carry a price tag of several thousand dollars. In general, consumers view Timex watches as being dependable, relatively accurate, and inexpensive timepieces that can be purchased in drug stores, discount stores, and department stores. The Rolex brand is perceived as an expensive status symbol distributed in fine jewelry stores or specialty shops. By using distinctly different pricing and distribution strategies, the marketers of Rolex watches
A. compete for the same customers through similar retail outlets.
B. create cognitive dissonance in consumers who purchased Timex wristwatches.
C. develop similar products as Timex but under different names.
D. compete for the same segment through different channels of distribution.
E. use a differentiation positioning strategy.
Answer: E
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