When Coca-Cola Focused on Developing Its Soft Drink Business but Missed

question 140

Multiple Choice

When Coca-Cola focused on developing its soft drink business but missed seeing the market for coffee bars and fresh-fruit-juice bars that eventually impinged on its soft-drink business, it was suffering from ________ because it defined competition in traditional category and industry terms.

• A) factor elimination
• B) marketing myopia
• C) factor reduction
• D) category points-of-parity
• E) reliance on product description

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Definitions:

Price Floor

A government-imposed minimum price level for a particular commodity or service, aimed at protecting producers.

Legal Minimum

A legally established lower threshold for payments or conditions, such as minimum wage.

Good Sold

Refers to a product that has been purchased by a buyer from a seller in a transaction.

Nonbinding Price Floor

A minimum price set by law above which the market price can lie, without any impact on the market price because the floor is set below equilibrium.