When Kellogg's Attempts to Alter a Consumer's Beliefs About Their

question 101

Multiple Choice

When Kellogg's attempts to alter a consumer's beliefs about their Special K brand as a means of getting the consumer to re-think his or her purchase decision, the marketer is using ________ to accomplish this task.

• A) biased positioning
• B) positioning
• C) psychological repositioning
• D) repositioning
• E) competitive depositioning

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Definitions:

Degree of Operating Leverage

Degree of operating leverage measures the sensitivity of a company's operating income to a change in sales volume, indicating the impact on profits from sales fluctuations.

Contribution Format Income Statement

An income statement format that separates variable costs from fixed costs, highlighting the contribution margin.

Unit Sales

The total number of individual items or units that a company sells during a certain period.

Contribution Margin Ratio

The contribution margin ratio is the ratio of the contribution margin (sales minus variable costs) to sales revenue, indicating the percentage of each sales dollar available to cover fixed costs and provide profit.