A Small Company in a Tightly-Contested Market Discovers That Their

question 10

Multiple Choice

A small company in a tightly-contested market discovers that their closest competitor's sales reps have been saying negative and untrue things about the company's products and service to their main customers.Their longest customer calls the company's CEO,concerned about these claims,and the CEO realizes that the company is in danger of losing business from these claims.What should the company do?

• A)Take out a full-page ad in the local newspaper disputing the claims with facts and stating that the competitor has been lying to customers.
• B)Talk to its customers in person to give them the facts and research that show the truth,and telling them to ask for the competitors' claims in writing before they believe anything
• C)The CEO of the company should call the CEO of the other company and divide up the local market so no one has to engage in duplicitous sales tactics anymore.
• D)Take the other company to court for slander unless they issue a full public apology.
• E)Engage in a counter-information campaign to spread negative information about the other company as a means of evening the playing field.

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Definitions:

Effortful Processing

A type of information processing that requires attention and conscious effort to encode or remember information.

Cocktail Party Effect

The ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli.

Late-Selection Models

Theories of attention that propose stimuli are processed for meaning before the selection process occurs, meaning that selection for further processing happens late in the perceptual process.

Elaboration

The process of adding more detail or information to something, often to clarify or enhance understanding.