Companies Regularly Must Combat Marketplace Rumors

question 72

Essay

Companies regularly must combat marketplace rumors.Several years ago Wendy's Restaurants were faced with one such problem.A rumor that Wendy's uses horserneat mixed in with their hamburger meat was spreading rapidly.Sales started to plummet.However, the vast majority of consumers did not believe the rumor.
a.How can a rumor that no one believes still hurt sales? Justify your answer.
b.To combat the rumors, Wendy's had three choices: (1) Flood the market with ads and new stories denying the rumors; (2) Flood the market with ads and new stories that focuses on new products and benefits offered by Wendy's; (3) Totally iguore the rumors and continue with their regular advertising carnpaigu.What should Wendy's
have done to combat the rumors? Justify your answer.

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Definitions:

Restrictive Covenant

A provision in a deed or lease restricting the actions the property's owner may take with the property.

Run with the Land

Legal terms or conditions that are attached to a piece of land and bind both current and future owners.

Binding

describes an agreement or contract that is legally enforceable and obligates the parties to its terms.

Original Parties

The initial entities or individuals who enter into a contract or agreement.