SAUCE MINI CASE: in 2008, Ragu Launched an Assortment of Its

question 101

Multiple Choice

SAUCE MINI CASE: In 2008, Ragu launched an assortment of its commercially successful sauces in microwavable pouches and promoted them as a way for busy moms to serve a healthful, fast, home-cooked meal to their children while minimizing the mess of cooking by eliminating the need for a second pot to heat the pasta sauce. The pouches held fewer servings of sauce and were slightly more expensive per ounce than the traditional jars that made up their sauce line.
-In the SAUCE MINI CASE,if consumers fail to notice the price difference between the pouch and jar formats of Ragu sauces,the price discrepancy is said to fall below consumers' ________.

• A) differential threshold
• B) absolute threshold
• C) perceived risk
• D) sensory reception
• E) subliminal level

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Definitions:

Direct Labor

The wages and salaries for the workers who are directly involved in the production of goods, easily traceable to the product.

Credit Sales

Sales made by a business where the payment is deferred, allowing the buyer to pay at a later date.

Production Budget

An estimation of the number of units that must be manufactured to meet the sales goals and the estimated costs involved.

Ending Inventory

The total value of all inventory, including raw materials, work-in-progress, and finished goods, at the end of an accounting period.