In 1984, IBM Launched the "PCjr," Its First Low-Priced, Educational/home

question 64

Multiple Choice

In 1984, IBM launched the "PCjr," its first low-priced, educational/home personal computer. Sales were poor because IBM most likely violated which criterion for picking a good brand name?

• A) The name was not distinctive nor memorable.
• B) The name did not fit the company image.
• C) The name had too many legal restrictions.
• D) The name was too confusing with both capital and lowercase letters.
• E) The name failed to suggest the product benefits.

---

Definitions:

Variable Costs

Costs that fluctuate in direct relation to production levels or sales figures.

Fixed Costs

Costs that do not vary with the level of production or sales, remaining constant regardless of business activity.

Sales Revenue

The total amount earned from the sale of goods or services before any costs or expenses are deducted.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and can be easily quantified and allocated to that product.