Marketing Chapter 7

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

• True

• False

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

• True

• False

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

• True

• False

A new product will usually cause at least a temporary shift in consumer purchases until customers decide

whether or not they like it.

• True

• False

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

• 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

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

a. True

• True

• False

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

• True

• False

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

• True

• False

Making products available at more locations is always a good idea, because that will make it easier for customers

to obtain your products.

• True

• False