During Market Testing,Sensation Cosmetics (SC)realized That the Cosmetics Industry Was

question 106

Multiple Choice

During market testing,Sensation Cosmetics (SC) realized that the cosmetics industry was dominated with multiple,well-established brands.These brands mostly sold their products in exclusive outlets and departmental stores.A new entrant like SC would require a different business model to be successful.Thus,SC started selling its products through direct marketing.In this scenario,Sensation Cosmetics accomplished substitution primarily through

• A) path dependence.
• B) technology transfer.
• C) knowledge diffusion.
• D) strategic equivalence.

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Definitions:

Discounted Note

Refers to a promissory note issued at a price lower than its principal value, to be redeemed at face value at maturity.

Maturity Date

The specified date on which the principal amount of a bond, loan, or other financial instrument is due to be paid in full.

Maturity Value

The amount payable to the investor at the end of a debt instrument's life, including principal and any remaining interest.

Interest

The cost of using borrowed money or the return on invested funds, typically expressed as an annual percentage of the principal.