The Purchase of Bottled Sparkling Water Is a Low-Involvement Purchase

question 155

Multiple Choice

The purchase of bottled sparkling water is a low-involvement purchase. How can a market leader such as Perrier keep people buying its brand instead of one of the numerous other brands displayed on retailers' shelves?

• A) Avoid Perrier brand stockouts on retailers' shelves.
• B) Make the purchase decision a high-involvement one.
• C) Offer coupons for Perrier bottled water.
• D) Convince retailers to offer only Perrier water.
• E) Denigrate its competition.

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Definitions:

Treasury STRIPS

Separate Trading of Registered Interest and Principal of Securities; bonds that are dissected into individual principal and interest payments and sold separately.

Treasury Bond

A long-term government debt security with a fixed interest rate and maturity of more than ten years.

Treasury Bond

Long-term, fixed interest government debt securities with a maturity of more than ten years.

STRIPPED Cash Flows

Cash flows from financial instruments that have been separated from their financial structure, often used in securitization.