For Marketing to Occur,there Must Be Two or More Parties

question 29

Multiple Choice

For marketing to occur,there must be two or more parties with unsatisfied needs.Dr.Pepper Snapple Group distributes Country Time lemonade in cans through supermarkets at a price comparable to that of soft drinks.The most likely "second" party needed for marketing to occur would be

• A)people who are nostalgic about childhood summers.
• B)people with a desire for a beverage other than soda or water.
• C)product demonstrators who offer samples of Country Time lemonade to shoppers at local supermarkets.
• D)a local distributor of alcoholic beverages.
• E)a nutritionist promoting the benefits of fresh fruit in people's diets.

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Definitions:

Degree of Operating Leverage

A ratio that measures the sensitivity of a company's operating income to a percentage change in revenue.

High-low Method

A technique used in accounting and finance to estimate variable and fixed components of a cost based on the highest and lowest activity levels.

Cost Analysis

The process of assessing the costs involved in carrying out a particular business activity or project.

Variable Expenses

Costs that vary in direct proportion to changes in the level of activity or volume of production.