JUICE MINI CASE: Fruit Fusions Is a Well-Known Producer of Organic

question 14

Multiple Choice

JUICE MINI CASE: Fruit Fusions is a well-known producer of organic fruit blended yogurts. It recently decided to start producing fruit juices under the Fruit Fusions name as well. The company's research determined that there was a potential niche market for organic fruit juices packaged in small single servings and sold as an alternative to canned soft drinks typically consumed during lunch. In trying to price the new line of drinks, Fruit Fusions asked consumers what they thought other drinks of a comparable quality cost, and what they considered to be a fair price for this kind of drink. With the slogan "Nothing this good comes in a can," the juice line's print ads feature a brightly colored bottle of juice on a completely white background and are placed in magazines specializing in health and wellness.
-In the JUICE MINI CASE, Fruit Fusions places its advertisements in magazines focused on health and wellness under the assumption that people reading such magazines are interested in health foods and are more likely to seek out information about Fruit Fusions from the advertisements than consumers reading a magazine focused on news and entertainment. This phenomenon is known as ________.

• A) selective exposure
• B) perceptual defense
• C) selective organization
• D) the contrast effect
• E) perceptual blocking

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Definitions:

Short Run

A period in which at least one input in the production process is fixed, limiting the ability of the firm to adjust production.

Competitive Firm

A business operating in a market where it has little to no influence over the price of its product or service due to competition.

Break-even Price

The price at which the total revenues of a business exactly cover its total costs, thus resulting in neither profit nor loss.

Marginal Revenue

The rise in income generated by selling an additional unit of a product or service.