A Small Company, Craig Inventions, Produced a Pill That Had

question 50

Multiple Choice

A small company, Craig Inventions, produced a pill that had the nutrient value of a healthy breakfast. The company put the product on the market as a substitute for breakfast for busy people. The product failed. Craig Inventions then marketed the pill as a diet product and it became very successful. What does the example best demonstrate?

• A) The company did not position the product well. It was difficult to convince consumers that a pill was a breakfast on the superordinate level; however, it did appear to fit appropriately within the superordinate category of diet pills.
• B) The company confused a subordinate level with a basic level of categorization, which led to the company's failure to identify the product's most important competitors.
• C) The company confused a superordinate level with a subordinate level of categorization.
• D) The determinant attributes between diet pills and breakfast were not sufficiently strong.

Recognize the importance of product availability and its impact on customer satisfaction and company profitability.

Distinguish different inventory types (e.g., cycle inventory, safety inventory) and their roles in supply chain management.

Comprehend the effects of demand forecast accuracy and aggregation on inventory management.

Identify the factors influencing the appropriate level of safety inventory and understand the trade-offs involved.

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Definitions:

Competitiveness

The inclination to strive for success or to win in situations where one is compared against others.

Pride

A sense of profound pleasure that comes from personal accomplishments, the success of close associates, or from having attributes or belongings that are greatly esteemed.

Standout Performer

An individual or entity that significantly exceeds the standard or expected performance level.

Outstanding

Exceptionally good or noticeable in comparison to others; distinguished beyond the norm.