Consumer Advocates Believe the Practice of Downsizing by Consumer Products

question 57

Multiple Choice

Consumer advocates believe the practice of downsizing by consumer products firms has resulted in

• A)lower product prices for consumers because of lower labor, raw material and packaging costs due to the recession and lower inflation in the United States.
• B)a greener environment due to the reduction in the amount of packaging used for promotional purposes thereby reducing the amount of waste disposed in landfills.
• C)fewer products and less product variability offered due to the corporate restructuring taking place worldwide.
• D)keeping prices from rising beyond the psychological barriers consumers have developed for products.
• E)a subtle, yet deceptive practice of taking advantage of consumers' buying habits by offering less product content in the same or larger package while maintaining or increasing the price.

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Definitions:

Financial Advantage

The benefit gained in financial terms, providing an edge over competitors or contributing to financial stability.

Outside Supplier

An external organization or company that provides goods or services to another company as opposed to internal sources.

Segment Margin

The amount of profit or loss generated by a particular segment of a business, after accounting for the direct and allocable expenses of that segment.

Annual Financial Advantage

The financial gain or benefit calculated on a yearly basis, considering all income and savings against expenses and costs.