Grape-Nuts Was One of the First Cereals Post Cereal Company

question 248

Multiple Choice

Grape-Nuts was one of the first cereals Post Cereal Company ever marketed.It scores well in brand awareness studies,but recently its sales have been steadily declining.Rather than assume the product was a "dog," the Grape-Nuts marketing manager decided Post should first

• A)update the flavor of the cereal by making it slightly sweeter.
• B)increase the amounts spent on advertising and sales promotion.
• C)do marketing research to identify what needs were not being satisfied.
• D)hire additional salespeople who were younger and more assertive to contact grocery stores.
• E)realign Grape-Nuts as a "star" and increase production.

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Definitions:

Prisoners' Dilemma

A scenario in game theory where individuals act out of self-interest leading to a worse outcome than if they had cooperated, despite their best interest to work together.

Free Rider Problem

A situation in which individuals consume more than their fair share of a public resource, or shoulder less of the cost of its provision, thereby taking advantage of others' contributions.

Anti-Competitive

Practices that reduce or prevent competition in a market, leading to less favorable conditions for consumers.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy while others keep theirs unchanged.