COB1-Unit 5

What is the primary goal of market segmentation?

• To increase product prices

• To divide a market into smaller subgroups

• To reduce competition between brands

• To create a monopoly in a specific industry

Which of the following best describes brand stretching?

• Expanding a well-known brand into new product categories

• Increasing the price of a product due to high demand

• Rebranding a failing product to attract new customers

• Limiting a brand to only one market segment

What does price elasticity refer to?

• The impact of branding on a product's price

• How demand for a product changes in response to price variations

• A pricing strategy that involves setting high initial prices

• The ability of a company to maintain stable prices over time

Companies monitor their ________ ________ to understand how many customers stop using their products or services over a given period.

Which term describes a company that actively challenges the market leader’s position?

• market leader

• market follower

• market challenger

• market nicher

The ________ ________ strategy sets high initial prices for a new product to maximize revenue from early adopters before reducing prices over time.

Market saturation occurs when:

• A product reaches its maximum potential within a market

• A company introduces a new product line

• A brand enters a new market segment

• A competitor takes over the market leader's position

Affiliate marketing is best described as:

• A pricing strategy to attract early adopters

• A marketing strategy where businesses reward individuals or other businesses for referrals

• A traditional form of word-of-mouth marketing

• A method used to create brand awareness through offline channels

Brochures, flyers, and presentations are examples of ________ ________ used to support sales and marketing efforts.

What is consumer behavior?

• Where and how people buy things

• Description of a typical customer

• The percentage of sales a company has

• The introduction of a product to the market