Which Circumstance Is NOT Ideal for Using Sampling to Encourage

question 95

Multiple Choice

Which circumstance is NOT ideal for using sampling to encourage trial usage of a new or improved brand? 

• A) The brand is either demonstrably superior to other brands or has distinct relative advantages. 
• B) The brand packaging is hard to distinguish from its competition. 
• C) Promotional budgets can afford to generate consumer trial quickly. 
• D) The product concept is so innovative that it is difficult to communicate by advertising alone. 
• E) All of these are correct.

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Definitions:

Complementary Resources

Assets or inputs that enhance the value or performance of another asset or input when used in conjunction, such as gasoline for cars or software for computers.

Price of Capital

The cost associated with acquiring capital, including the interest or dividends paid to access funds or the rental rates paid for physical capital.

Marginal Resource Cost

Marginal resource cost refers to the additional cost incurred by employing one more unit of a resource, such as labor or capital, in production.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.