Explain Why a Supermarket Might Place Its Own Generic Brand

question 70

Essay

Explain why a supermarket might place its own generic brand items next to national brand items,even though the national brands have a much higher price than the generics.

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Definitions:

Joint Process

A manufacturing procedure in which multiple products are produced simultaneously from the same raw materials or processes.

Split-Off Point

The stage in a production process where multiple products emerge from a common input and can be separately identified or measured.

Processed Further

Refers to additional operations or treatment applied to products beyond the initial production stages to enhance value or quality.

Intermediate Product

A product that requires further processing before it becomes a finished good.