Which of the Following Statements About "New Products" Is FALSE

question 81

Multiple Choice

Which of the following statements about "new products" is FALSE?

• A) In order for it to be advertised as new, there should be a functionally significant change in the product-according to the FTC.
• B) A product should be considered "new" by a particular firm if it is new in any way for that company.
• C) The FTC considers six months as the maximum time that a product should be called "new."
• D) According to the FTC, a product may be called "new" (for example, in advertising) as long as the firm has made at least some minor change in the package or product.
• E) A marketing manager should consider a product new if it is aimed at new markets.

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Definitions:

Profit-oriented Pricing

A pricing strategy aimed at maximizing profit by considering factors such as production costs, consumer demand, and competitive prices.

Target Return-on-sales Pricing

Target return-on-sales pricing is a pricing strategy where the price is set based on a specific target for the percentage return on sales.

Target Profit Pricing

A pricing strategy in which the selling price of a product is determined by adding a desired profit to the cost of making the product.

Price Premium

The extra amount consumers are willing to pay for a product due to perceived added value or quality.