Campbell Soup spent seven years and $55 million on a super secret project to produce a
line of Intelligent Quisine (IQ) food products ‘scientifically proven to lower high levels
of cholesterol, blood sugar, and blood pressure.” They were responding to the needs and
desires expressed by consumers. However, after 15 months in an Ohio test market,
Campbell Soup yanked the entire IQ line because
a. Progresso Soups got to the stores first with a similar product and dominated the shelf
space.
b. the product’s claims were exaggerated and not backed up with scientific data.
c. the product was priced too high and there was too little product variety.
d. the price was too low, leaving the consumer believing that Campbell’s sacrificed taste
for nutrition.
e. a downturn in the economy shifted people’s desire from a healthy lifestyle to a desire
for home and comfort. The new soups were too different from the product they
remembered as children.
Answer:
One problem in the interstate trucking industry is the number of trucks that return
empty after making a delivery. There is a website where independent interstate truckers
can look for loads to carry on their return trips. Because the trucks would normally
return empty, truckers who use this website to generate business they would not have
had otherwise, receive a reduced shipping rate. This reduced rate is an example of
a. penetration pricing.
b. target pricing.
c. cost-plus pricing.