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As the Marketing Manager for Acme Products Inc

question 64

Multiple Choice

As the marketing manager for Acme Products Inc., you just became the new program leader for Baubles, a product Acme introduced last year. Initial sales far exceeded expectations. In response, the previous program leader decided to reduce the profit margins for channel members to more quickly recover the high costs incurred in the development of the Baubles product and its marketing program. Unfortunately, sales
Of Acme Baubles declined by 2 percent while its market share declined by 7 percent as new competitors entered the market. After conducting a customer survey, you
Conclude customers were generally satisfied with Acme's Baubles. However, Baubles were not as readily accessible as they were the previous year. Furthermore, after
Conducting a survey among the leading wholesalers and retailers of Acme Baubles, you discover they were not pleased with the reduced margins. Moreover, because
Acme's principal competitors offered them greater margins, they gave the competitors' products competing with Baubles better service and shelf space than Acme's. This is an example of:

Definitions:

Biological Preparedness

Refers to the idea that humans and animals are biologically prepared to fear certain stimuli as opposed to others. That is, evolution has “hard-wired” organisms to easily learn those associations that facilitate species survival.

Specific Phobias

Intense, irrational fears of specific objects or situations that lead to avoidance behavior and significant distress.

Learning To Fear

The process through which fear responses are acquired through experiences or observations of certain stimuli.

Anxiety Sensitivity

The tendency to catastrophically misinterpret arousal-related bodily sensations because one believes the sensations to have harmful consequences, such as death, insanity, or loss of control.