A few years ago, Jenny Inc. introduced a small, lightweight snow removing machine in the market called the Snow Pup
Even though the product worked well, sales failed to meet expectations because consumers perceived the name to mean that the Snow Pup was a toy or too light to do any serious snow removal. In this scenario, which of the following explains the perception of consumers?
a. Selective distortion
b. Stimulus discrimination
c. Cognitive dissonance
d. Confirmation bias
ANSWER: a
Selective distortion occurs when consumers change or distort information that conflicts with their feelings or beliefs. Consumers have used the process of selective distortion and perceived the name Snow Pup to mean that it is a toy or is too light to do any serious snow removal.
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Which of the following is NOT a likely reason to study international business?
A) Global events affect almost all companies. B) Differences among countries in physical, social, and competitive conditions may cause companies to alter their operating methods from country to country. C) Business conducted outside the limits of any one country is inexplicably on the decline. D) Firms may be better able to obtain better or less expensive resources by operating internationally.
An exception to the PLC theory in terms of production location is often a product with very rapid change in innovation
Indicate whether the statement is true or false