Ch 7 Marketing

Dividing consumers into markets based on where they live is referred to as market segmentation.

• True

• False

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

• True

• False

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

• 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

It is impossible for organizations to base their positioning strategies on the business environment because conditions change so rapidly and unexpectedly.

• True

• False

Indirect competition occurs when businesses decide to emphasize factors of their marketing mix other than price.

• 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