Zephyr Corp

question 26

Multiple Choice

Zephyr Corp. manufactures air purifiers. It comes up with an idea for a new range of air purifiers called alpha purifiers. Before launching the range of purifiers, Zephyr lets some people try out the product and then collects feedback from them to identify any problems with it. Which of the following is best exemplified in this scenario?

• A) Curbstoning
• B) Concept testing
• C) Perceptual mapping
• D) Behavioral targeting
• E) Branded "black-box" methodology

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Definitions:

Sale of Stock

This refers to the process of selling shares of a company to investors; this can be done via public offerings or through private sales.

Tax Avoidance

Tax avoidance involves legally exploiting the tax system to reduce tax liabilities, such as through deductions and credits, as opposed to tax evasion, which is illegal.

Tax Loss

Tax loss refers to a situation where business expenses exceed its incomes, which can be used to offset other taxable income.

Economies of Scale

Cost advantages a business obtains due to expansion, characteristically causing a decrease in fixed costs per unit of production.