The Use of the Gecko Lizard in the Geico Direct

question 35

Multiple Choice

The use of the gecko lizard in the Geico Direct insurance company commercials indicates a positioning strategy based on:

• A)price/quality
• B)use or application
• C)cultural symbol
• D)product class
• E)distribution intensity

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activities.

Contribution Margin

The difference between a company's sales revenue and its variable costs, used to cover fixed costs and generate profit.

Variable Cost

A corporate expense that changes in proportion with production output, such as raw materials and labor costs, differing from fixed costs.

Operating Cash Flow

The cash generated from the normal operations of a business, excluding financing and investing activities.