According to the GHM Theory,the Choice Between an In-House Sales

question 25

Multiple Choice

According to the GHM Theory,the choice between an in-house sales force versus independent agents should turn on the relative importance of investments in developing persistent clients by the agent versus list-building activities by the insurance firm.What would GHM thus predict about the sales of whole life versus term life insurance?

• A)Both would be sold by the insurance company's in-house sales force
• B)Whole life would be sold by the insurance company's in-house sales force;term by an independent agent
• C)Whole life would be sold by an independent agent;term by the insurance company's in-house sales force
• D)Both would be sold by an independent agent
• E)An insurance company would try to "buy" the business (whole and term life insurance)of its independent agents

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Definitions:

Ideal Point

The position at which a particular market segment’s ideal product would lie on a perceptual map.

Point of Parity

Elements of a product or brand that are similar to those of competitors, indicating a level of equality in the consumer's eyes.

Perceptual Map

A Perceptual Map is a visual tool used in marketing to depict consumers' perceptions of brands or products relative to competitors.

VALS Framework

A tool used in psychographic segmentation that classifies consumers into eight distinct types based on their responses to a questionnaire, focusing on values, attitudes, and lifestyle.