Chef's Catalog Built Its Reputation on Selling the Highest-Quality Baking

question 130

True/False

Chef's Catalog built its reputation on selling the highest-quality baking ingredients.The catalog retailer has added a line of fine kitchen tools and wants its customers to think of the retailer as a place to buy everything needed to bake the finest breads and desserts--not just for buying the ingredients.The marketing term for changing consumers' perceptions of the Chef's Catalog is segmentation.

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Definitions:

Clientele Effect

The theory suggesting that the types of dividends a company pays can attract different types of investors.

Stockholders

Individuals or entities that hold stock in a company, thereby owning a portion of the company and having certain rights, such as the right to vote on corporate matters.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures.

Dividend Irrelevance Theory

A theory suggesting that an investor's choice between investing in companies that pay dividends and those that do not does not affect the investor's overall return.