Gradually Changing the Package of a Product That Depends Heavily

question 57

Essay

Gradually changing the package of a product that depends heavily on brand loyalty can be successful if each change is minor. Over the course of a year or more the package may change totally in appearance without offending or confusing brand loyal customers. What factors contribute to forgetting and allow this marketing strategy to work?

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Definitions:

Journal Entry

An accounting entry documenting the specifics of a financial deal.

Current Liability

A company's debts or obligations that are due within one year.

Operating Activities

These involve the primary, day-to-day activities of producing goods or providing services, which generate most of the company's revenue.

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the company, representing a liability on the balance sheet.