A Small Company, Craig Inventions, Produced a Pill That Had

question 13

Multiple Choice

A small company, Craig Inventions, produced a pill that had the nutrient value of a healthy breakfast.The company put the product on the market as a substitute for breakfast for busy people.The product failed.Craig Inventions then marketed the pill as a diet product and it became very successful.What does this example best demonstrate?

• A)The company did not position the product well.It was difficult to convince consumers that a pill was a breakfast on the superordinate level; however, it did appear to fit appropriately within the superordinate category of diet pills.
• B)The company confused a subordinate level with a basic level of categorisation, which led to the company's failure to identify the product's most important competitors.
• C)The company confused a superordinate level with a subordinate level of categorisation.
• D)The determinant attributes between diet pills and breakfast were not sufficiently strong.

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Definitions:

Chronological Order

The arrangement of events, dates, or actions in the order that they occurred or will occur, from earliest to latest.

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts, used to transfer sums from one account to another.

Transaction Analysis

This is the process of reviewing and analyzing a company's transactions to determine their effects on its financial statements.

IFRS

International Financial Reporting Standards are a set of accounting rules and standards that determine how transactions and other accounting events should be reported in financial statements globally.