The Maker of Peter Pan Peanut Butter Has Developed a Honey-Flavoured

question 8

Multiple Choice

The maker of Peter Pan peanut butter has developed a honey-flavoured peanut butter spread to add to its peanut product line.Is this a new product?

• A) Yes,this is a discontinuous innovation.
• B) No,peanut butter cannot be considered an innovation.
• C) Yes,additions to the product line are new products.
• D) No,this is not a product improvement.

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Definitions:

Distribution

The process of making a product or service available for use or consumption by a consumer or business user, using direct or indirect means.

Economy of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Small Manufacturers

Companies engaged in the production of goods on a smaller scale, often characterized by more specialized products or services.

Cottages

Small, typically cozy houses, often located in rural or vacation settings, and sometimes used as secondary homes or vacation retreats.