Calculation question: Imagine that you are a company that produces light bulb for home usage. You have recently developed a new technology. With this new technology, the light bulb lasts 30% longer than the light bulbs that you can commonly find on the market, which is sold at $1. 5 each. In addition, this light bulb can better protect your vision compared to the existing light bulbs. You know that consumers are willing to pay $2 more each bulb for this benefit.
Because of the technology advancement, the new light bulb is also easier to produce.
The labor cost of manufacturing the light bulb is reduced to half of the cost for existing light bulbs (40 cents each), although the material cost for the new light bulb is 15 cents higher than the existing light bulb. Please calculate the PVC for the new light bulb. 2. In the current environment, promotion methods such as TV commercial, print ad, direct mail, telemarketing may become less effective in a world where consumers are constantly bombarded by marketing messages and tuning out.
Instead, consumers can shop for products by taking up a more active role in the search process, using Google, blobs, or other search engines to look for information about products. Instead of spending your money interrupting people and hoping that they pay attention, some people argue that companies should try setting up a blob and writing interesting content, so that people want to hear what you have to say and come find the company when they are interested in the products.
Do you agree that nowadays companies should stop investing in “pushing promotions” such as TV commercials, print ad, direct mail, and telemarketing and instead put their money in setting up blobs and putting up videos on the internet to attract consumers to the company? Please explain why or why not you agree. These questions are short-answer questions.
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