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Scenario 4-3
El Sol sunglasses were designed by an avant-garde artist. She said there were no sunglasses out there that she would wear, so she had to design her own. Her sunglasses were worn by a whacked-out bad guy in a blockbuster movie and, because of this, have acquired a cult following among young teens. Print advertisements are visually sparse--nothing more than a still shot from the movie and a logo for the brand.
Eyewake sunglasses were designed by an optician after he realized that conventional sunglasses allowed in certain types of light that promoted eye fatigue. He made 1,000 of his sunglasses and gave 100 of them away to friends and acquaintances. After trying them out for awhile, several of them told him that they really liked them when they had to drive for extended lengths of time. He placed an ad in the back of a tourism magazine, extolling the safety benefit of driving with eyes that weren't fatigued. He promptly sold all of his remaining glasses.
Kushyspecs sunglasses were developed after research revealed that there was a small group of people who didn't like wearing sunglasses because most sunglasses left pinch marks on their noses. The company that performed the research developed sunglasses with a soft, cushiony nose piece. Advertisements for Kushyspecs feature the headline "The mark of a good pair of sunglasses is no mark at all."
-(Scenario 4-3) Which of these brands of sunglasses was positioned through a product differentiation strategy?
Government Regulations
The laws and rules established by governments to control or guide specific economic activities or markets.
Lending Standards
The set of criteria used by banks and financial institutions to determine the creditworthiness and eligibility of prospective borrowers.
Competitive Markets
Markets characterized by many buyers and sellers where no single participant can significantly influence the price of goods or services.
Externalities
Effects of a transaction or activity on third parties who are not directly involved, which can be either beneficial (positive externalities) or harmful (negative externalities).
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