Scenario 12.1 Use the Following to Answer the Questions

question 26

Multiple Choice

Scenario 12.1
Use the following to answer the questions.
Cheetos Fat-free Crunchies is a product developed through advanced technology.Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer.Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013.
About 18 months later,a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat,and that they contained preservatives and additives.Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people.To save the product,Cheetos reduced the remaining fat to 0 grams,took out the preservatives,and improved the taste.
-Refer to Scenario 12.1.Cheetos produces several cheese snack products and is considering a new Cheetos brand of crackers.This new Cheetos brand of crackers would most likely be an example of

• A)a product modification.
• B)a line extension.
• C)a quality modification.
• D)a functional extension.
• E)an aesthetic modification.

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Definitions:

Demands Correlation

Refers to the relationship between the demands for different goods or services, indicating how changes in one impact the other.

Bundling

Bundling refers to the marketing strategy of selling several products or services together as a single combined unit, often at a discount.

Higher Revenues

An increase in the amount of money received from sales or services, often an objective in businesses aiming to grow or expand.

Reservation Prices

The maximum price a buyer is willing to pay for a good or service or the minimum price a seller is willing to accept.