The Walt Disney Company Carefully Markets Two Distinct Winnie-The-Poohs; One

question 193

Multiple Choice

The Walt Disney Company carefully markets two distinct Winnie-the-Poohs; one is the original line-drawn figure (e.g., on fine china sold at Nordstrom) and the other is a cartoon-like Pooh (e.g., on polyester bed sheets sold at Target) . This is an example of

• A) mass customization.
• B) a Tiffany/Walmart strategy.
• C) one product and multiple market segments.
• D) price discrimination.
• E) psychographic market segmentation.

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Definitions:

Healthy People

Individuals or populations that possess a state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Lemons Problem

A term in economics used to describe the issue of quality uncertainty in a market where sellers have more information about the product quality than buyers, leading to adverse selection.

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable risks by one party in a transaction, often seen in insurance and financial markets.

Moral Hazard

When a party whose actions are unobserved can affect the probability or magnitude of a payment associated with an event.