Venus Corp

question 27

Multiple Choice

Venus Corp. a high-technology, gadget-making company has introduced a gaming console with attractive features. Even though the console is priced modestly and has better features than the existing ones, it has failed as many customers are apprehensive about buying it. To create demand, Venus Corp. should:

• A) price the console extremely high.
• B) create its own set of technical standards.
• C) ensure that there are adequate complementary products.
• D) use minimalistic and subtle advertising and marketing strategies.
• E) avoid licensing the format to other companies.

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Definitions:

Constraint Lines

Lines in a graph of a linear programming model representing limitations or restrictions on the resources available.

Contribution Margin

The amount of revenue from sales that exceeds the variable costs associated with producing a product or service.

Production Constraint

Limitations or restrictions in the production process that prevent a company from reaching its full production potential.

Cost-Benefit Trade-Off

The balance between the advantages and disadvantages (in terms of cost) of a decision or project, to evaluate its feasibility or value.