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Scenario 7-3 After Filing for Bankruptcy in 2009 and Requiring Nearly $58

question 45

Multiple Choice

Scenario 7-3
After filing for bankruptcy in 2009 and requiring nearly $58 billion in governmental funding simply to stay afloat, General Motors realized it had to undergo major changes in order to compete with more successful automakers. The company began designing questionnaires and focus groups in order to gain a better understanding of what its cars had been lacking, and to probe for specific improvements consumers may have been looking for. The company recorded its research findings and began to apply them to its product line. A little over a year later, Consumer Reports stated that 83 percent of Chevrolets, GM's top brand, had an average or better score in terms of predicted reliability, an increase from 50 percent the year before. Apparently, the company's efforts helped turn the company in the right direction.("Consumer Reports: GM Reliability Makes Great Strides." MSNBC.com, October 26, 2010.)
-(Scenario 7-3) Allowing consumers to look at advertisements in a group can be a powerful indicator of their true feelings toward a particular ad.Peer influence can be observed,and hopefully some level of post-test screening can be done to create increased validity.These elements are characteristic of what kind of studies?

Definitions:

Committed Fixed Cost

Long-term, fixed costs that a business incurs from entering into long-term contracts or having fixed assets, which are not easily altered in the short term.

Taxes On Real Estate

Levies imposed by government entities based on the assessed value of real estate property.

Indirect Manufacturing Cost

Costs related to the production process that cannot be directly traced to specific products, such as utilities or supervision, often referred to as manufacturing overhead.

Conversion Costs

The sum of direct labor and manufacturing overhead costs. These are the costs incurred to convert raw materials into finished goods.