Joseph Confectionery Has Decided to Start Marketing a Line of Christian-Oriented

question 71

Multiple Choice

Joseph Confectionery has decided to start marketing a line of Christian-oriented candy under the Testamint brand name.The candy maker is optimistic about establishing a brand in the marketplace and has high hopes of its success.As a marketing consultant,you inform the candy maker that branding can do all of the following EXCEPT:

• A) encourage consumer repeat purchasing
• B) ensure a higher margin of profit
• C) create product differentiation
• D) aid in positioning
• E) possibly yield a larger market share

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Definitions:

Decreasing-cost Industry

An industry where the costs of production decrease as the industry grows due to economies of scale.

Long-run Equilibrium

A state in which all factors of production and outputs are fully adjusted to economic conditions, leading to stable prices and optimal resource allocation.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing the surplus revenue after all costs have been accounted for.