In 1984, IBM Launched the "PCjr," Its First Low-Priced, Educational/home

question 382

Multiple Choice

In 1984, IBM launched the "PCjr," its first low-priced, educational/home personal computer. Sales were poor because IBM most likely violated which criterion of picking a good brand name?

• A)The name was not distinctive nor memorable.
• B)The name did not fit the company image.
• C)The name had too many legal restrictions.
• D)The name was too confusing with both capital and lowercase letters.
• E)The name failed to suggest the product benefits.

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Definitions:

Marginal Cost

The financial outlay required to produce an additional unit of a product or service.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity of the good that consumers are willing to buy.

Marginal Cost

The increment in cost due to the manufacture of an additional product or service unit.

Price Elasticity

A concept related to elasticity of demand, specifically measuring how much the quantity demanded of a good responds to changes in its price.