11. Sam drives 40 minutes out of the way to buy Starbucks coffee even though the
ID: 384110 • Letter: 1
Question
11. Sam drives 40 minutes out of the way to buy Starbucks coffee even though there is Dunkin Donuts 10 minutes away from his apartment. In this case, Starbucks coffee is considered a specialty product. A) True B) False 12. When Arm&Hammer; branches out from baking soda into laundry detergent and toothpaste, the company is expanding its product line A) True B) False 13. A company includes an "instant coupon" as part of a product's package. giving the buyer a reduction off the retail price. What is the company attempting to do? A) Increase sales B) Provide information C) Stabilize sales D) Differentiate the product Ford is running ads emphasizing that it offers longer warranties than other automobile companies. This is an example of which promotional strategy objective? 14. A) Accentuate the product's value B) Provide information C) Stabilize sales D) Differentiate the product 15. Consumer products generally depend on pushing strategies A) True B) FalseExplanation / Answer
11. A) True
In this case, Starbucks is considered a specialty product, because Sam actively seek to purchase Starbucks even by spending extra time and effort, despite having an alternative available nearby.
12. B) False
The company is expanding its product mix, not product line. Product line is a subset of product mix. A product line carries same type of products. Expanding a product line means either adding diffferent models (length) of same product category or different size, color variations (depth) of the same model.
13. A) Increase Sales
By giving an instant coupon as part of poduct package, the company is incentivising the customer to make more purchase. This creates the opportunity for the company to make additional sale and thus increase its revenue.
14. A) Accentuate the product's value
15. B) False
Consumer products depend more on pulling strategies. B2B products need pushing strategies.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.