People of All Backgrounds, Occupations, and Income Levels Wear Watches

question 31

Multiple Choice

People of all backgrounds, occupations, and income levels wear watches, but Rolex focuses only on the high-income portion of the market. Rolex uses a(n) _____ strategy.

• A) mass marketing
• B) multisegment
• C) unsegmented
• D) single-segment

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to price takers.

Price Taker

A market participant that accepts the prevailing prices in the market, unable to influence prices through their own actions.

Perfectly Competitive

A market structure characterized by a large number of buyers and sellers, homogeneous products, free entry and exit, and perfect information, leading to zero economic profit in the long run.

Standardized Product

Goods or services that are uniform in quality and performance across different producers and can be easily substituted for one another.