Finland-Based Rapala VMC Corporation Is the World's Largest Fishing Lure

question 133

Multiple Choice

Finland-based Rapala VMC Corporation is the world's largest fishing lure manufacturer.It developed its first fishing lure--a cigar-shaped minnow--in 1962.The annual market for fishing lures in terms of retail sales is approximately $600 million.Rapala VMC garnered one-third of that amount in 2008.New lures must be introduced each year in order to stay competitive in this industry.Like other lure manufacturers,Rapala focuses on two questions in developing and making new lures: Does it work,and does it look good? Developing a new lure takes two or three years and involves extensive field testing by tournament professionals and fishing guides.At the annual fishing industry trade show in 2008,Rapala unveiled the "dream lure for the 21ˢᵗ century."
-Refer to Rapala.The "dream lure for the 21ˢᵗ century will more than likely be an example of a(n) :

• A) new product line
• B) addition to existing product line
• C) discontinuous innovation
• D) improvement to existing product
• E) repositioned product

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Definitions:

Availability Heuristic

Bases a decision on recent events relating to the situation at hand.

Past Occurrences

Events or incidents that have taken place before the current moment; historical events or happenings.

Rational Decision Model

A systematic process of making decisions that are logically sound, based on available information and rational analysis.

Rational Decision Model

A decision-making process based on systematically evaluating alternatives, with the goal of selecting the most logical and optimal option.