Product Repositioning Refers to

question 224

Multiple Choice

Product repositioning refers to

• A)a decision made by marketers regarding which two firms they consider to be their most dangerous competitors and on which criteria they can compete most effectively.
• B)using sensitivity analysis to place products on a grid to identify potential untapped markets.
• C)changing the place an offering occupies in consumers' minds relative to competitive products.
• D)the practice of selling-off a firm's least successful product line and redirecting that revenue into a totally new product.
• E)the practice of selling-off a firm's least successful product line and redirecting that revenue to other more promising products or product lines within the firm.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or sales. They increase as production increases and decrease as production decreases.

Fixed Costs

Costs that remain constant regardless of the amount of production or business operations.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributed towards covering fixed costs and generating profit.

Financial Break-even Point

The level of revenue necessary for a firm to cover all its operating expenses and financial costs, achieving a net income of zero.