In 1980, Tylenol Faced a Crisis-Numerous Customers Died After Ingesting

question 63

Multiple Choice

In 1980, Tylenol faced a crisis-numerous customers died after ingesting their tablets. This was due to sabotage by cyanide poisoning. Like it or lump it, the consumer's saw this as a product failure in terms of quality and safety. The strategy should have been , first and foremost:

• A) execute fresh public relations with Tylenol clearly presented as being the best
• B) give away free samples to recover good will
• C) reassure customers; safety is the first concern
• D) batten down the hatches; it will blow over
• E) protect the brand; make sure it is seen as sabotage

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Definitions:

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power.

Inefficient

A state where resources are not optimally allocated, often resulting in wasted resources or outputs that do not maximize potential value.

Monopolistically Competitive

Describes a market structure where many companies sell products that are substitutes, but are not perfect substitutes, leading to some degree of market power for each firm.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs or strict regulations.