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Cheetos Fat-free Crunchies is a product developed through advanced technology.Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer.Cheetos introduced Fat-free Crunchies in limited markets in 2008 and began national distribution in 2009.
About 18 months later,a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat,and that they contained preservatives and additives.Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people.To save the product,Cheetos reduced the remaining fat to 0 grams,took out the preservatives,and improved the taste.
-Refer to Scenario 11.1.Suppose that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of its remaining inventory to a warehouse club.This would be an example of a(n)
A) strategy for the maturity phase.
B) phase out product deletion strategy.
C) immediate-drop decision.
D) pullout product deletion policy.
E) return to test marketing.

Question

Quizplus · Accepted Answer

An immediate-drop decision is when a company decides to stop production and sell off remaining inventory quickly, often due to poor performance or negative perceptions, as described in the scenario.

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