IKEA Sells a Portable Workbench Called the Fahrtfull

question 88

Multiple Choice

IKEA sells a portable workbench called the Fahrtfull. The product has many positive features, and in German or Swedish markets, the name describes the product's features well ( fahrt meaning travel) . This brand name in the United States, however, may not be as effective due to

• A) disappointment when the product fails to perform as the brand name implies.
• B) the poor attempt at humor, which makes consumers question product quality.
• C) governmental restrictions on brand names that read or sound like bodily functions.
• D) its unfavorable phonetic and semantic associations in English.
• E) difficulty in symbolically showing "fahrtfull" in advertising.

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Definitions:

Net Income

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Owner, Capital

An account on a company's balance sheet representing the owner's invested equity or interest in the business.

Liability Insurance Policy

Insurance coverage that protects against claims arising from injuries or damages to other people or property for which the insured is liable.

Prepaid Expense

Expenses paid in advance for goods or services to be received in the future, which are recorded as assets until they are actually used.