A failure fee is a penalty payment
a. a retailer assesses a manufacturer to handle defective new products that customers
returned.
b. a wholesaler makes to a retailer as compensation for sales not made while the
product was on the shelf.
c. a retailer makes to a manufacturer for stockoutsnot keeping point-of-purchase
displays continuously stocked with the new product.
d. a manufacturer makes to a wholesaler as compensation for case-lot sales not made to
retailers.
e. a manufacturer makes to compensate a retailer for devoting valuable shelf space to a
product that fails to sell.
Answer:
Ann’s young son suffers from allergies and complains about his watery eyes and
drowsiness. Ann felt bad because she thought there was nothing she could do to help
him. When Ann saw the ad for a new drug that counters these symptoms in Martha
Stewart Living magazine, she vowed to ask his doctor about this product on her son’s
next visit. Ann is at which stage in the hierarchy of effects?
a. She is the trial stage and will move to the interest stage soon.
b. She has moved quickly from the awareness stage to the interest stage.
c. She was in the consumer development stage and will more than likely move to the
transition stage.
d. She is in the evaluation stage and will move to the interest stage soon.
e. She was in the interest stage and then moved quickly to the diffusion stage.