The Major Risk That Companies Run When They Introduce an Entirely

question 47

Multiple Choice

The major risk that companies run when they introduce an entirely new product is:

• A)cannibalizing sales of existing brands.
• B)damaging the core brand in the minds of consumers.
• C)allowing the advertising to carry the marketing burden.
• D)confusing consumers because there may be too many new product introductions.
• E)prompting consumers to question the value and benefits of the original brand.

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Definitions:

Marketable Securities

Financial instruments that can be easily converted into cash, typically with high liquidity and short maturity periods.

Owners' Equity

The total assets of a business minus its total liabilities, representing the ownership interest of shareholders.

Computer Software

Consists of programs, procedures, and routines associated with the operation of a computer system.

Tangible Assets

Physical and material assets that have value, such as machinery, buildings, and inventory, which can be seen, touched, and quantified.