Why Is Benefit Positioning Often Used by a Firm When

question 28

Multiple Choice

Why is benefit positioning often used by a firm when its competitors offer comparable products that basically do the same thing?

• A)to point out emotional benefits that differentiate its product from others
• B)to send new messages about its product's identity
• C)to spell out functional benefits that its product offers
• D)to suggest new uses for its product

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Definitions:

Universal Life Insurance

Similar to whole life insurance; the cash value can be used to pay the insurance premium if the policyholder doesn’t pay it, but if the cash value is not enough to pay the insurance, the policy can lapse.

Premium Payment

The amount paid for an insurance policy, either as a lump sum or in installments.

Cash Value

The amount available in cash for an insurance policy or investment account, often accessible to the policyholder or investor.

Corporate Bonds

Debt securities issued by corporations to raise capital, with the expectation that they will pay back the principal along with interest.