According to Ries and Trout, Cadbury Suffered from the ________

question 96

Multiple Choice

According to Ries and Trout, Cadbury suffered from the ________ when the company allowed its brand to become diluted by putting their name on such variants as mashed potatoes, powdered milk, soups, beverages, as well as chocolates and candies.

• A) "branding fallout" concept
• B) "greed is good" trap
• C) "line-extension" trap
• D) "image syndrome"
• E) "pyramid principle"

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Definitions:

Profit-Volume Ratio

A measure that illustrates how profits will change with a change in volume, showing the relationship between profit and sales levels.

Mixed Cost

A cost that contains both variable and fixed cost elements, changing in total with the level of activity but having a portion that remains constant.

Variable Cost

Costs that vary directly with the level of production or service activity.

Fixed Cost

Expenses that do not change with the level of production or sales over the short term, such as rent, salaries, and insurance.