When Starbucks Introduced Their Instant Coffee Brand, Via, the Company

question 200

Multiple Choice

When Starbucks introduced their instant coffee brand, Via, the company only sold it in packages of three single-cup units. Starbucks' primary objective for selling Via in three-unit packages rather than single-unit packages was most likely

• A) to encourage the consumer to try the product several times.
• B) to encourage a higher consumption of all Starbucks products.
• C) to sell more because of infrequent coffee purchases.
• D) to reduce costs in the distribution and handling of the Via products.
• E) to engage in environmentally responsible behavior.

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Definitions:

Note Receivable

A financial asset representing a written promise to receive a specific amount of money from a debtor at a future date or on demand.

Bank Service Charge

Fees charged by banks for the use of their services, such as account maintenance and wire transfer fees.

Cash Short

A situation where the actual cash on hand is less than the expected amount, often detected through cash register or petty cash reconciliations.

Selling Expenses

Costs directly associated with the marketing and selling of products or services.