Kellogg's different types of cereals, each targeted at a different type of user, are an example of multiple products aimed at multiple markets.Manufacturing these different cereals is clearly more expensive than producing one but seems worthwhile if it adds to the manufacturer's sales revenues and profits, doesn't reduce quality or increase price, and
A)conforms to all FDA guidelines.
B)creates economy of scale.
C)decreases the cost of the physical plant.
D)stabilizes the sales revenues and profits.
E)better serves the customers' needs.

Question

Quizplus · Accepted Answer

Kellogg's different cereals targeting different types of users better serve the customers' needs and preferences. This can lead to increased sales revenues and profits without reducing quality or increasing prices. It is not necessary for it to conform to all FDA guidelines, create economy of scale, decrease physical plant cost or stabilize sales revenues and profits.

Kellogg's Different Types of Cereals, Each Targeted at a Different