Scenario 1-2 Chug Enterprises Is Considering Entering the Already-Crowded Sports Drink Market

question 61

Multiple Choice

Scenario 1-2
Chug Enterprises is considering entering the already-crowded sports drink market with a line of products.The first brand will be advertised to teenagers as being the best-tasting sports drink on the market.The second brand will be advertised to adults as being the lowest calorie sports drink you can buy.The third brand will be advertised to senior citizens as containing calcium, a mineral needed to maintain a healthy bone structure.Each brand will have separate, distinctive packaging.However, the drinks inside are actually identical to one another.
-(Scenario 1-2) If the brand aimed at senior citizens is successful in the U.S.market, Chug Enterprises plans to introduce it worldwide.However, appropriate images of senior citizens vary from culture to culture.Therefore, Chug Enterprises would be wise to engage in

• A)local advertising.
• B)international advertising.
• C)national advertising.
• D)regional advertising.

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Definitions:

Demand Price

The maximum price at which a consumer is willing to buy a specific quantity of a good.

Binding Quota

A limit on the quantity of goods that can be imported or exported over a period, which cannot be exceeded.

Japanese-Made Cars

Vehicles manufactured by automotive companies based in Japan, known for their reliability and technology.

Substitutes

Goods or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.