Principles of Marketing: Chapter 7 Test Review

Unlike the consumer market, the business market is fairly stable and is not segmented into various categories.

• True

• False

Offering cellular phone plans suited to the number of phones in a family & the amount of minutes used in one month is an example of marketing a product based on product usage.

• True

• False

The product user positioning strategy encourages use of a product or service by associating a personality or type of user with the product.

• True

• False

Companies must be careful not to base their positioning decisions solely on the actions of their competitors.

• True

• False

The price and quality positioning strategy always stresses higher price as a sign of quality.

• True

• False

Competition forces businesses to offer reasonable prices for the products and services that consumers use.

• True

• False

The type of competition faced by a business will affect its positioning.

• True

• False

When businesses are in direct competition, competitors' pricing strategies are very important.

• True

• False

It is always costly and time-consuming to change promotional strategies.

• True

• False

The Internet is virtually useless as a source of current competition information.

• True

• False