Sweet Dream Confectioners Uses the Same Ingredients as Most Other

question 427

Multiple Choice

Sweet Dream Confectioners uses the same ingredients as most other producers of chocolate candies. In fact, taste tests suggest that the candy itself, while quite good, isn't much better than other well-known brands of chocolate. However, the company wraps its candies in expensive-looking foil and places them in very attractive boxes. It promotes its products in advertisements as "the ultimate in chocolate experience." Sweet Dream charges a much higher price than most competitors, but sales continue to grow. This success indicates that:

• A) consumers always behave in an irrational manner.
• B) there is more to the total product offer than the physical product.
• C) consumers seldom consider price when making a buying decision for goods such as chocolate.
• D) chocolate is best classified as a convenience good.

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Definitions:

Preventive Maintenance

Routine inspection and maintenance of equipment and machinery to prevent sudden failures and ensure efficient operation.

System Reliability

The probability that an entire system or network will function as intended for a specific period under given conditions.

Reliabilities

Measures of the probability that a system or component will perform its required function for a specified period under stated conditions.

Objective

A specific, measurable goal that is designed to be achieved within a specific timeframe to further an individual's or organization's agenda.