A Differentiated Targeting Strategy Can Allow a Firm to Obtain

question 31

Multiple Choice

A differentiated targeting strategy can allow a firm to obtain a bigger share of the overall market; this strategy

• A) is the cheapest option.
• B) requires the use of advanced advertising techniques.
• C) rarely works.
• D) is likely more costly than an undifferentiated strategy.
• E) is ineffective without multiple brand names.

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Definitions:

Availability Heuristic

A cognitive bias that causes people to overestimate the likelihood of events based on their ability to recall similar instances.

Escalation Heuristic

A cognitive bias or decision-making process where individuals increase their commitment to a previously taken course of action beyond the level that is justified by the current situation.

Satisficing Heuristic

A decision-making strategy that involves searching through the available alternatives until an acceptability threshold is met, rather than seeking the best possible solution.

Design Thinking

An iterative process in solving problems creatively and innovatively by understanding the human needs involved, re-framing the problem in human-centric ways, and adopting a hands-on approach in prototyping and testing.