Suppose Marketers Want to Use Product Differentiation and Market Segmentation

question 50

Multiple Choice

Suppose marketers want to use product differentiation and market segmentation strategies. What question should they ask when considering the potential for cannibalization with these strategies?

• A) Will our new products steal customers or sales from our older ones?
• B) Will the products compete head-to-head with those of a competitor?
• C) Can this action successfully draw customers away from competitors?
• D) Are there enough similarities within the market segment to warrant such high costs?
• E) Will this action eliminate the need for individualized advertising and promotion?

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Definitions:

Self-Serving Bias

A cognitive bias that leads individuals to attribute their successes to internal factors while blaming external factors for their failures.

Differential Forgetting

Refers to the phenomenon that different types of information are forgotten at different rates, often influenced by the relevance, emotional impact, and repetition of the information.

Fundamental Attribution Error

The tendency to overemphasize personality traits and underestimate situational factors when explaining others' behavior.

Illusory Correlation

Cognitive exaggeration of the degree of co-occurrence of two stimuli or events, or the perception of a co-occurrence where none exists.