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

question 54

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) What would most likely be the least effective strategy Chug Enterprises could pursue in marketing its product to consumers?

• A)to focus on integrated brand promotion
• B)to use delayed response advertising
• C)to stimulate primary demand
• D)to attempt to increase elasticity of demand

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Definitions:

Inefficiency

A situation where resources are not used in the best possible way, leading to wastage or less optimal outcomes.

Equilibrium Quantity

The quantity of a good or service at which quantity demanded equals quantity supplied, leading to a stable market condition.

Producer Surplus

The disparity between the price at which sellers are ready to offer a product and the price they actually get.

Price Floor

A government-imposed limit below which prices cannot fall, typically used to ensure that producers can cover their costs.