Which of the Following Statements About Product Packaging Is True

question 68

Multiple Choice

Which of the following statements about product packaging is true?

• A) Ad agencies are always involved in packaging decisions.
• B) As manufacturers continue to produce environmentally safe packaging, the marketer's cost of materials decreases.
• C) Packaging design is as important as advertising because consumers respond to packaging intuitively.
• D) After products are purchased, their packages have no role to play as they are discarded.
• E) Packaging only serves as an advertising medium; it does not protect the product.

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Definitions:

Present Value Index

A calculation that compares the present value of net cash inflows to the initial investment, used to evaluate the profitability of an investment.

Computed

Refers to something that has been determined or calculated using a computer or calculator.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project, calculated by discounting the expected future cash flows to their present values and subtracting the initial investment.

Present Value

The immediate value of a future amount of money or a series of payments, discounted at a given rate of return.