Digital Cookware Has Developed a New Kind of Skillet That

question 114

Multiple Choice

Digital Cookware has developed a new kind of skillet that should make cooking easier for many non-chefs.The skillet has a display on its handle that beeps to alert the cook when the pan's target temperature is reached.The skillet with the aid of an accompanying cookbook will take much of the guesswork out of cooking.Digital Cookware is a small company,and it has invested considerable money in developing this new technology,which it eventually hopes to use in an entire line of pots and pans.It has run some small ads for the new skillet in cooking magazines and been featured on some morning talk shows.It needs a quick infusion of cash to maintain its current operational level and to develop the rest of the cookware line.Digital Cookware is considering some kind of sales promotion.
-Refer to Digital Cookware.The company's first task is to define its exact sales promotion objective.If the goal of the company is to persuade customers to buy its brand of skillet as opposed to one of the skillets made by its competition,it should:

• A) use on-pack coupons
• B) run a cooking contest that has contestants enter recipes that use the new skillet
• C) use price-off packages
• D) use bonus packs
• E) institute a loyalty marketing program

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Definitions:

Total Utility

The full satisfaction experienced when consuming an exact aggregate quantity of a good or service.

Equal-Elevation Lines

Contour lines on a map representing points of equal elevation above a reference level, typically sea level.

Total Utility

refers to the total satisfaction gained from consuming a particular quantity of goods or services.

Marginal Utility

Marginal utility is the additional satisfaction or benefit (utility) a consumer derives from purchasing one more unit of a good or service.