The Lemon-Lime Carbonated Soft Drink 7Up Has Been Very Successful

question 255

Multiple Choice

The lemon-lime carbonated soft drink 7Up has been very successful in the United States. Dr Pepper/Seven Up, Inc., the maker of 7Up, uses a family branding strategy to market 7Up worldwide. In Shanghai, China, sales have suffered since the brand name means "death through drinking." When picking a good brand name, which criterion did Dr Pepper/Seven Up, Inc., violate when it chose to use a family branding strategy to market 7Up in China?

• A)The name should have favorable phonetic and semantic associations in other languages.
• B)The name should be simple.
• C)The name should have no governmental restrictions.
• D)The name should suggest the product's benefits.
• E)The name should not be difficult to spell or pronounce.

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Definitions:

Straight-Line Depreciation

A method of calculating the depreciation of an asset, where the cost is evenly distributed over its useful life.

Prior Period Adjustment

A correction of errors in financial statements of previous periods that were not discovered until the current period.

Capitalized Amount

The total cost of a capital asset that is recognized for accounting purposes, including acquisition costs and expenses incurred to bring the asset to its usable condition.

Percentage-Of-Completion Method

An accounting method used to recognize revenue and expenses of long-term contracts as a percentage of work completed during the period.