Refer to the Scenario Below to Answer the Following Questions

question 82

Multiple Choice

Refer to the scenario below to answer the following questions.
Selman & Saks,a maker of men's and women's razors and electric hair trimmers,had little reason to become involved in the global arena.But after acquiring Wellman Enterprises,whose largest division engages in a licensing agreement with a German firm to produce women's hosiery,managers at Selman & Saks wondered just whether a company- wide global focus would be more profitable after all.
Managers at Selman & Saks studied Wellman's licensing agreement in great detail.Though seeing first- hand the benefits Wellman found with the licensing agreement,managers decided that Selman & Saks would target the French market merely via exporting.
With the assistance of a domestic export department,the Selman & Saks razors and hair trimmers entered France.For six months,sales were mediocre.But after that,sales suffered.Opinions varied among numerous managers as to the cause of the failure."Who knows the local market better than people who live there?" was a comment heard throughout Selman & Saks."Maybe we needed an alliance with a French firm,or a licensing agreement,before racing to get there."
-Which of the following is the strongest reason that the owners of The Attic Trunk might NOT want to completely discount the mature consumers as a still- viable target market?

• A)Mature consumers are spending an increasing percentage of their income on specialty items such as those originally sold by The Attic Trunk.
• B)Mature consumers are less willing to shop around and change brands than younger consumers are,so they will likely remain loyal to The Attic Trunk.
• C)Mature consumers account for almost half of all consumer spending in the United States.
• D)Mature consumers are interested in shopping where younger families shop in an effort to look as young as they feel.
• E)Mature consumers wield considerable influence over purchases made by their children and grandchildren.

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Definitions:

Product Assessment

The process of evaluating a product’s performance, quality, and market potential.

New-product Strategy Development

The overall process and planning involved in identifying market opportunities and creating new products to fulfill those opportunities.

Firm's Overall Objectives

The broad, general goals of a business organization, encompassing profitability, growth, market share, and brand reputation among others.

Commercialization

The process of introducing a new product or service into the market, involving activities from development to sales.