What are the three requirements of labels? Why are these important?
What will be an ideal response?
Legal Requirements Labels must meet federal, state, even local rules and regulations. The Food and Drug Administration (FDA) requires all processed-food companies to provide detailed nutritional information clearly identifying calories, fats, carbohydrates, and other information. Other products must have warnings of a certain size that are easily read and understood by the customer. Hazardous materials such as cleaning products, pesticides, and many other items require 14 different pieces of information be included on the label. It is easy to understand why space on the label is at such a premium.
Consumer advocacy groups and government agencies evaluate labels to identify misleading or mislabeled products, and there is a long history of legal prosecution for inappropriate, unethical, even illegal product labeling. In 1914, the federal government, through the Federal Trade Commission, first ruled misleading or blatantly phony labels were illegal and represented unfair competition. Since then, additional legislation has been passed by the federal government such as the Fair Packaging and Labeling Act (1967). States have also passed legislation, which, in most cases, supports federal legislation but also extends specific rules and policies.
Consumer Requirements Consumers want to use products out of the box and package labeling is the most convenient place for initial use instructions. Additionally, product precautions, simple assembly information, and appropriate age for product use may also be included on the package. Essentially, any information the consumer needs to make a product choice, particularly at the point of purchase, needs to be on the package.
Marketing Requirements Since package labeling represents the last marketing opportunity before the purchase decision, as much label space as possible is allocated to marketing communications. Brand, logo, product image, and other relevant marketing messages take up the dominant space on the label. On a box of Procter & Gamble's Bounce fabric softener sheets, the brand name "Bounce" is approximately 50 percent of the space on the front panel and the rest of the space is a bright color (orange) with clean, fresh clothes hanging on the line and a green field. P&G uses the entire front panel of the box to support the marketing efforts of the brand.
You might also like to view...
On drafts and checks, a drawer's secondary liability does not arise until the drawer fails to pay or to accept the instrument
Indicate whether the statement is true or false
Amy is a U.S. citizen. During the year she earned income from an investment in a French company. Amy will be subject to U.S. taxation on her income under the principle of source-based taxation.
Answer the following statement true (T) or false (F)
What is gain or loss calculated as a percent of original value of an investment beyond the original value of the investment?
A) APR B) Exchange Rate C) Investment Rate D) Income E) Rates of return
A mixed integer linear optimization model differs from a nonlinear optimization model in that the mixed integer linear optimization model ________
A) contains terms that cannot be written as constant times a variable B) is considerably more difficult to solve than the nonlinear optimization model C) uses equalities and inequalities to describe constraints in the business decision problem D) contains only a subset of variables that are restricted to being integers while others are continuous