An Advantage to Using a Perceptual Map Is That It

question 65

Multiple Choice

An advantage to using a perceptual map is that it

• A)shows the firms strengths, weaknesses, opportunities and threats.
• B)shows which products of a firm are most profitable.
• C)shows how other companies are marketing their products.
• D)can highlight potential market positions that might be underserved.
• E)it is the quickest way to determine market segments.

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Definitions:

Perfect Competition

An ideal market scenario in which there are many buyers and sellers, homogeneous products, and no barriers to entry or exit.

Transfer Pricing Formula

A method used to determine the price at which goods and services are sold between divisions within the same company.

Variable Cost

Costs that vary in total in direct proportion to changes in the level of activity or volume of output produced.

Divisional Managers

Managers who are responsible for overseeing the operations, profitability, and strategic planning of a specific division within a company.