When the Makers of V8 Vegetable Juice Noticed That Sales

question 55

Multiple Choice

When the makers of V8 vegetable juice noticed that sales of its original product were stabilizing,they decided to offer a new product,one that offered a full serving of vegetables and a full serving of fruit.They called the product V8 V-Fusion and they marketed it to their original V8 customers in hopes of increasing sales.This is an example of what kind of marketing strategy?

• A)product development
• B)diversification
• C)market penetration
• D)positioning
• E)market development

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Definitions:

Earnings Manipulation

A practice where managers use judgment in financial reporting and in structuring transactions to alter financial reports to either mislead stakeholders about the underlying economic performance of a company or to influence contractual outcomes that depend on reported accounting numbers.

Managers

Individuals responsible for controlling or administering all or part of a company or similar organization, making decisions regarding its operations.

Multiple-Element Sales

Transactions that involve the sale of multiple products or services for a single price, requiring allocation of revenue among the different elements.

Revenue Recognition

The accounting rule that identifies the precise circumstances for recognizing or recording revenue.