Ken's New Product Seemed Like a Perfect New Addition to the Product

question 122

Multiple Choice

Ken's new product seemed like a perfect new addition to the product line,but he was getting some pushback from distributors,who did not seem to want to take on the new product.What options would make the most sense for Ken?

• A) Generate additional demand with customers so retailers and distributors will clamor for the product.
• B) Offer to provide educational efforts if consumers don't understand the product.
• C) Offer technical support to ensure consumers will be satisfied with the product.
• D) Provide financial incentives for the distributors.
• E) All of these.

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Definitions:

Marginal-cost Pricing

A pricing strategy where the price of a product is set equal to the additional cost of producing one extra unit of output.

Productive Efficiency

A state where an economy or firm produces goods or services at the lowest possible cost, using resources in the best possible manner without waste.

Managerial Incentives

Incentives designed to motivate managers to make decisions that align with the owner's or shareholders' interests.

Pure Monopolist

A single supplier in a market that controls all the goods or services, with no close substitutes and high barriers to entry.