STR 581 help A Guide to career/uophelp.com STR 581 help A Guide to career/uophelp.com | Page 20

Lanase, a leading producer of aerated drinks, decides to introduce fruit
juices and bottled water into the market. The company’s budget requires
it to keep advertising and marketing costs as low as possible. It therefore
decides to introduce the products under the company brand name. Which
of the following is a likely consequence of the decision?
Consumers will buy the products since the company name will be easily
recognizable to them.
If the products do not perform well in the market, the company will not
be affected since it has not tied its reputation to the products.
The development costs for future products will be extremely high.
The company’s goodwill will be unaffected since consumers will find it
easy to differentiate one product from another.
17.
Gallide is a warehouse retailer that conducts special in-store
demonstrations of certain products. This allows potential customers to
see and feel the products for themselves and be convinced that the
products are worth purchasing. The salespeople of the store receive a
bonus if a customer buys the products after a demonstration. Which of
the following is a likely reason that the store has adopted this approach
for some of its products?
Consumers know which brand they want to purchase before they enter
the store.
Consumers are inclined to make many of their brand choices only when
they are at the store.
Consumers respond well to the use of product placement as an
advertising technique.