A Junior Marketing Executive at MegaGrain Cereals Suggests Increasing the Package

question 112

Multiple Choice

A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on

• A) cost-cutting measures.
• B) continually selling to new customers and markets.
• C) creating and maintaining satisfying exchange relationships.
• D) high-volume, low-margin sales.
• E) increasing shelf space for their brands.

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Definitions:

Commodity Contracts

Commodity contracts are legally binding agreements for the purchase or sale of physical goods or raw materials at a predetermined price and future date.

Buyer

A buyer is a person or entity that purchases goods or services from a seller in exchange for money or other consideration.

Ordinary Course

Activities that are considered normal, customary, or usual for a business under certain conditions.

Security Interest

A legal right or security interest on assets that have been offered as a guarantee, typically for the purpose of ensuring the repayment of borrowed money.