Gradually Changing the Package of a Product That Depends Heavily

question 60

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 to allow this marketing strategy?

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Definitions:

Sales Tax

A tax levied on sales of goods and services, typically calculated as a percentage of the sale price.

Inventory Shrinkage

The loss of inventory that can occur from theft, damage, or administrative errors.

Adjusting Entry

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Single-Step Income Statement

A simplified income statement that calculates net income by subtracting expenses from revenues in one step.