Scenario 3

question 190

Multiple Choice

Scenario 3.2 Use the following to answer the questions.Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House is one of the first of its kind, designed as an updated, modern version of the modular home, offered as a base home plus add-ons known as "pods." The base home is a one-bedroom, one-bath 734-square foot version at a price of around $80,000. There is also a 1,000 square-foot version for around $100,000. All versions may add on the additional one-room pods as desired which are shipped to your location and constructed on-site. The homes offer galvanized metal roofing, corrugated steel siding, VOC-free paints, and a "butterfly" roof that collects rainwater. The i-House uses 30% less energy than a similar square-foot home and offers "green" characteristics of solar panels, tankless water heaters, and low-flow faucets. In addition, it comes with bamboo flooring, a renewable resource. The modular, pre-fabricated design offers endless options for creating the customer's home and its engineered building system cuts down on construction waste. Due to the "green effects" of the i-House, the state governments have given it a tax abatement for any sales taxes.
-Refer to Scenario 3.2. Clayton Homes is revising its marketing strategy for the i-House due to the recent recession. Which of the following is the best action for promoting the i-House in the near future?

• A)Emphasize the value of the i-House products.
• B)Focus on the "green" qualities of the home and target environmentally-conscious individuals.
• C)Significantly reduce advertising expenditures to create an exclusive image.
• D)Decrease production until the economy improves.
• E)Significantly reduce the prices on the company's product offerings.

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Definitions:

Franchisor

The party in a franchising agreement that owns the overarching company, trademarks, and products, granting the right to operate a franchise.

Trademark

A distinctive mark, word, design, picture, or arrangement that is used by a producer in conjunction with a product and tends to cause consumers to identify the product with the producer.

Personal Liability

The legal responsibility of an individual to cover debt or damages arising from their actions.

Partnership

A business entity legally formed by two or more individuals who collaborate in managing the enterprise and sharing its financial gains.