Scenario 18-1 Digital Cookware Has Developed a New Kind of Skillet That

question 137

Multiple Choice

Scenario 18-1
Digital Cookware has developed a new kind of skillet that should make cooking easier for many nonchefs. The skillet has a display on its handle that beeps to alert the cook when the pan's target temperature is reached. With the aid of an accompanying cookbook, the skillet will take much of the guesswork out of cooking. Digital Cookware is a small company, and it has invested considerable money in developing this new technology, which it eventually hopes to use in an entire line of pots and pans. It has run some small ads for the new skillet in cooking magazines and been featured on some morning talk shows. It needs a quick infusion of cash to maintain its current operational level and to develop the rest of the cookware line. Digital Cookware is considering some kind of sales promotion.
-Refer to the scenario. The company's first task is to define its exact sales promotion objective. If the goal of the company is to persuade customers to buy its brand of skillet as opposed to one of the skillets made by its competition, what should it do?

• A)use on-pack coupons
• B)use a cooking contest that has contestants enter recipes that use the new skillet
• C)use price-off packages
• D)use bonus packs

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Definitions:

Corporate Statements

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Takeover Disadvantages

Potential negative impacts of a corporate takeover, such as job losses, cultural clashes, and increased debt.

Corporate Funds

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Target Corporation's Shares

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