Question: Barnes & Noble spun off the NOOK, its unprofitable e - reader. Shoppers couldn't get beyond identifying Barnes & Noble as a destination for books;
Barnes & Noble spun off the NOOK, its unprofitable ereader. Shoppers couldn't get beyond identifying Barnes & Noble as a destination for books; however, most people are not buying hard copies of books and instead are using ereaders. The NOOK, though an ereader, has different features from the Amazon's Kindle. The Kindle is inexpensive, easy to use, and syncs up easily with an Amazon digital account. This example shows that product failure results from all of the following EXCEPT
a overestimation of market size
b incorrect positioning
c a low price
d an inferior product
Besides its high cost, what is the other possible problem that test marketing is likely to face?
a The decision to commercialize a product includes ordering materials and equipment.
b The product's success may present a threat to other product extensions recently introduced by the company and thus spread its customers thin.
c It exposes the new product and its marketing mix to competitors before its introduction. Thus, the element of surprise is lost.
d Consumers may perceive the sales promotion, pricing, or advertising campaign as overzealous hard sell or even unfair trade practices.
The Link Corp. manufactures a special kind of filter that can purify water quickly, but consumers in the market are not aware of the product's existence. In this case, which of the following strategies will increase the sales of the filter?
a Using statusconscious advertising
b Using direct response advertising
c Using selective advertising
d Using customergenerated advertising
Hobby Lobby scans all purchases at the checkout counter. Each product has a bar code to identify it This technology allows Hobby Lobby to keep track of its sales, avoid stockouts by reordering products from suppliers as needed, and show Hobby Lobby marketers which products are profitable. This is an example o
a universal product codes
b product lines
c brand labels
d informational labels
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