QUESTION Which of the following, if true, most strongly suggests that an enhanced-water product would NOT increase overall profits for Red Bull? A) Retailers would display the enhanced water near other enhanced-water drinks. B) Glacéau’s VitaminWater brand has a variety of endorsements from celebrities famous for being unconventional. C) The customers who would purchase Red […]
QUESTION Which of the following, if true, most strongly suggests that Red Bull should NOT produce a line of enhanced waters? A) To date, none of the successful enhanced-water manufacturers have shown a connection between consuming their products and improved health. B) Enhanced water is typically sold by the same retailers that sell energy drinks. […]
QUESTION Which of the following, if true, most strengthens the argument for launching a private-label brand? A) The stores enjoy high visibility and attract foot traffic well. B) The economy has started to improve, and consumer spending is increasing. C) Customers at Jenny’s Store are likely to become more price-conscious over the next few years. […]
QUESTION A Stardust ‘n’ Clay product line manager is critical of the organic product line proposal, arguing that sales of these products will come at the expense of sales of Stardust’s other beauty products. Her belief is that the new line will pull current customers to a new product rather than bring in new customers […]
QUESTION Which of the following, if true, strengthens the case for Stardust ‘n’ Clay to begin developing organic beauty products? A) Retailers report a consumer preference for inexpensive skin-care and beauty products that do a better job than the ones currently available. B) Organic raw materials sourced from economically weak countries provide a source of […]
QUESTION Which of the following questions is LEAST relevant to the question of whether the company should produce a private-label brand? A) Would selling private brands increase overall sales? B) Is the profit margin higher for sales of private brands as opposed to established brands? C) Do nationwide retailers usually have success when producing private […]
QUESTION What is “driving traffic”? What are the two pricing strategies associated with driving traffic? What will be an ideal response? ANSWER Answer: Driving traffic means attracting customers. Stores use loss leaders, products advertised at or below cost, to attract customers. Low pricing can also be used to increase market share, the percentage of […]
QUESTION Which of the following is NOT a strategy companies use to induce customers to buy with credit cards? A) Offer a zero interest rate for a period of time. B) Extend the time period of payments. C) Offer interest-only payments for a period of time. D) Offer a discount for early-paying customers. E) Lower […]
QUESTION Why might women pay more for a lipstick that comes with a mirrored case than one sold without the mirror? In other words, what functions of pricing and branding come into play here? What will be an ideal response? ANSWER Answer: Lipstick with a mirror sold at a high price might feel more […]
QUESTION What is an innovation? What will be an ideal response? ANSWER Answer: An innovation is a product that customers perceive as being newer or better than existing products. Explanation: Examples of past innovative products range from the vacuum cleaner (1907) to Velcro (1954) to the Searle birth control pill (1960) to the Toyota […]
