Of Vivian Callaway's Problems in Finding a New Dessert Product

question 62

Multiple Choice

of Vivian Callaway's problems in finding a new dessert product was that consumers often say one thing in a market research study,then behave differently in an actual supermarket setting.To overcome this problem,Callaway and her team did a lot of "iterative experimentation" in the marketplace.This strategy involved

• A) interviewing only those customers who were leaving the supermarket with a RTE dessert product.
• B) interviewing only those customers who were leaving the supermarket without an RTE dessert.
• C) conducting market research on desserts in shopping malls so customers didn't know which dessert was being studied, thereby reducing bias.
• D) offering customers two samples of the identical product to cull out respondents who couldn't give an accurate assessment.
• E) putting a prototype product in the store, making changes based upon consumer responses, and then repeating the process.

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Definitions:

Labor Rate Variance

The financial difference between the actual cost of labor and the budgeted (or standard) cost of labor, influenced by the wage rates paid and the amount of labor hours used.

Labor Standards

Benchmarks or norms established for the amount of labor required to perform a task efficiently, often used to set production targets and labor budgets.

Particular Product

A specific item or good offered for sale by a business.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or budgeted) cost of labor based on standard rates and hours.