Discuss the following advertising issues and determine whether the ads are ethical. a. Mrs. Butterworth's syrup has a label that states there is "Grade A Butter" in the syrup. The fine print on the label describes "0.4 percent butter" in the "syrup
product." b. Carnation Coffeemate Lite is advertised as having "50% LESS FAT." The claim is true but there is less than 0.5 grams of fat eliminated from Lite as compared to regular Coffeemate. It is important to understand that the average American consumes 100 grams of fat per day.
a. The students should address the issues of whether the ad is legal (it is) and then move on to whether it is balanced and how it would make them feel to have a product using these descriptions. The example is similar to the manner in which some grocers display strawberries in the store: Only the ones on top are good, and the description or appearance may mislead the customer. The student should also discuss the fallout from such claims when consumers discover the discrepancy: loss of goodwill and public relations problems with resultant effect on sales.
b. Students should take the same approach as in answer (a) because the advantages of trying to use a health concern to sell products when there is little the product does to help can create a feeling of opportunism on the part of the company. In this case, the ad seems worse than the syrup because there are health consequences associated with this advertising. Presently the FDA and FTC are examining the issue of product advertising with respect to health claims and the use of the words lite, light, fat-free, and cholesterol-free.
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Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of $690,000, variable expenses of $352,000, and traceable fixed expenses of $104,000. During the same month, the West business segment had sales revenues of $140,000, variable expenses of $56,000, and traceable fixed expenses of $24,000. The common fixed expenses totaled $162,000 and were allocated as follows: $89,000 to the East business segment and $73,000 to the West business segment. The contribution margin of the West business segment is:
A. $84,000 B. $145,000 C. $422,000 D. $234,000
Samsung's first value proposition when the brand was launched in the United States was price and functionality.
Answer the following statement true (T) or false (F)
Despite multiple failures and setbacks, Terri perseveres in her efforts to solve an engineering problem. This is an example of which of the following?
a. market research b. team building c. grit d. pitching
Common law refers to A)law that is the same or similar in all the states
B)law made when judges decide cases and then follow those decisions in later cases. C)law made by legislatures in the form of statutes. D)the legal systems of France, Germany, and Italy.