Scenario 12

question 43

Multiple Choice

Scenario 12.1 Use the following to answer the questions.
Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013.
About 18 months later, a series of competitors' ads was run claiming that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste.
Refer to Scenario 12.1. The new, improved Cheetos Fat-Free Crunchies was a(n) ____.

• A) quality modification
• B) aesthetic modification
• C) functional modification
• D) brand extension
• E) product line extension

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Definitions:

Venture Capitalism

Investing in early-stage companies with high growth potential in exchange for equity, or partial ownership.

Tender Offer

A public offer to buy shares from shareholders, usually at a premium over market price, as a way to gain control of the company.

Digital Accessories

Electronic ancillary equipment that supports and enhances the use of primary digital devices such as computers, smartphones, and tablets.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount, in exchange for immediate money.