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 Which of the following, if true, most weakens the argument for launching a private-label brand? A) Success has been mixed for retailers that have already launched private brands. B) Many national brands insist that retail stores stock the brand’s entire product line. C) Customers demand national brands when it comes to extremely expensive items. […]
QUESTION One of the managers at Jenny’s feels that the tide will turn against private-label brands once the economy improves. Which of the following is the best counterargument to this claim? A) Some retailers with private brands have performed well even when the times were good. B) A company cannot make a major business decision […]
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 […]
QUESTION Which soup company could get away with charging more than its competitors, for at least a short time: a long-established company with a nationally recognized brand or a new company with a brand no one has heard of? Use evidence from the text to support your answer. What will be an ideal response? […]
QUESTION What is the consumer market? What will be an ideal response? ANSWER Answer: The consumer market consists of all those individuals or households that want goods or services for their personal use. Explanation: Consumer goods and services fall into the four general classes of convenience, shopping, specialty, and unsought.
QUESTION At which stage in developing a new product does packaging come into play? What will be an ideal response? ANSWER Answer: at the test-marketing stage Explanation: Test-marketing is the first stage at which the product is ever sold, and so packaging is needed.
