Scott Thought of Himself as a Very Successful Marketer

question 72

Multiple Choice

Scott thought of himself as a very successful marketer. He created a campaign with a product logo that was very popular and that customers associated with a quality product. It was so popular that in a few months, the logo began to appear almost everywhere. Instead of increasing sales of the product, the customer demand began to decrease as competitors' products became more successful. What characteristic of learning was most likely ruining Scott's apparent success?

• A) Too much repetition was decreasing the strength of the conditioning effect, thus leading to extinction of the learned relationship between the logo, the quality of the product, and the association with Scott's company.
• B) Customers confused Scott's logo with the logo of Scott's competitors, making cognitive learning incomplete.
• C) The logo produced only a fixed-ratio schedule of reinforcement that did not sustain sales, while Scott's competitor used a variable-ratio schedule.
• D) Over time, the logo became boring, and customers punished Scott's company by buying competitors' products as a type of revenge for their boredom.

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Definitions:

Net Working Capital

The gap between what a firm owns in the form of current assets and what it owes as current liabilities, reflecting its ability to cover short-term expenses.

Statement of Financial Position

Also known as a balance sheet, it is a financial statement that shows the assets, liabilities, and equity of a company at a specific point in time, illustrating the company's financial condition.

Total Assets

The cumulative amount of all resources controlled by an entity from which future economic benefits are expected to flow to the entity.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and not expected to be converted to cash in the short term.