Excelsior Inc

question 95

Multiple Choice

Excelsior Inc.is a fast-food company that has decided to expand overseas to the countries of Germany,Japan,and India.But a debate has arisen among marketing executives about whether to use an adaptation plan (where the company's product offerings are altered to meet local demands) or an integrated marketing plan (where the same standardized products are offered in the three countries) .Which of the following would support the adaptation approach?

• A) Consumers in these countries prefer meals with known ingredients that are familiar to them,and they are slow to adapt new fast food ideas
• B) The price of the company's products will increase by about 15 percent as a result of the cost of introducing new food ingredients.
• C) The under-30 age group in these three countries eagerly adopts North American products as a status symbol of increasing wealth.
• D) The current worldwide economic slump has caused a decline in the sales revenue for all fast food companies.
• E) Finding suppliers for new food items will require the hiring of translators in each of the three countries.

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Definitions:

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, indicating the cost of producing each additional unit.

Marginal Cost

The add-on cost for the production of an extra unit of a good or service.

Average Fixed Cost

The division of production's unchanging costs, unaffected by output volume, by the total quantity of produce generated.

Profit-maximizing Output

Profit-maximizing Output is the level of production at which a business achieves the highest possible profit, determined by analyzing costs and revenues to find the most efficient production level.