Elle Appliances Has Recently Released Its "Elite" Cooking Range

question 20

Multiple Choice

Elle Appliances has recently released its "Elite" cooking range. The cooking appliances were advertised extensively with offers for early-bird buyers and assured refunds if the goods were found defective. This resulted in a lot of hype surrounding the goods and high levels of projected demand in the market. However, after its release in the market, the products failed to substantially add to the company's profits. When the venture failed to recover even the minimum projected returns, the marketing manager blamed the production department for the delays in production, while the production manager claimed that he was doing his best to dispatch stock on the predetermined days. Which of the following best explains the failure of this venture by Elle?

• A) The company priced the "Elite" cooking range at relatively low rates.
• B) The company minimized its operating costs by using efficient production techniques.
• C) The company followed a low inventory system.
• D) Elle was a reputed company which enjoyed the loyalty of customers.
• E) Elle had recently acquired one its major rival firms.