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DOG TREAT MINI CASE: Observing Consumers at Veterinary Clinics, Pet

question 41

Multiple Choice

DOG TREAT MINI CASE: Observing consumers at veterinary clinics, pet superstores, and grocery stores, Happy Dog determined that consumers were more likely to buy expensive dog treats at their veterinarians' offices than at grocery stores or pet superstores. Happy Dog researchers also observed that consumers spent less time looking at the pet treats before purchasing them when the treats were purchased at the veterinarian's office because they assumed that anything on offer at a veterinarian's office must be good for their pets. As a result of this research, Happy Dog Beef Treats are sold only at the offices of veterinarians and dog groomers and are more expensive than the average dog treat that pet owners might purchase at the supermarket. Happy Dog recently modified its treat recipe to come out with NEW, JUICIER Beef Treats for pet owners to use to reward their dogs. Advertisements promoting the new recipe show a young boy teaching his dog a series of tricks by rewarding her consistently with Happy Dog Beef Treats. At the end of the commercial, the boy cues his dog for the tricks in front of his parents, she performs, and his parents clap proudly.
-In the DOG TREAT MINI CASE, Happy Dog's advertisement shows its Beef Treats as a means of fulfilling which of the following core American values?

Definitions:

Alternative Uses

The various options available for the use of an asset, investment, or resource, often considered in decision-making processes.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits one misses out on when choosing one option over another.

Make-Or-Buy Decision

The decision-making process whereby a company evaluates the costs and benefits of manufacturing a product in-house versus purchasing it from an external supplier.

Fixed Overhead

Fixed overhead refers to indirect costs that remain relatively stable regardless of the level of production or sales, such as salaries of administrative personnel and depreciation of buildings.