The Limitation of Product Positioning Analysis Is That

question 73

Multiple Choice

The limitation of product positioning analysis is that:

• A)the results are ambiguous and difficult to interpret.
• B)data collection is complex and open to error.
• C)few analysts are qualified to interpret this kind of analysis.
• D)it does not provide information on which positions are most appealing to customers.

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Definitions:

Nonprice Competition

Strategies companies use to attract customers that do not involve changing the price of goods or services, such as advertising and product differentiation.

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount consumers are willing to buy at various prices.

Elasticity Coefficient

A measure that indicates how much the quantity demanded of a good or service changes in response to a change in price.

Average Revenue

The revenue a company receives for selling one unit of a product, or the total revenue divided by the quantity of products sold.