The strategic focus on Pepsi in Chapter 3 details the announcement of tests indicating levels of pesticides in Pepsi's soft drinks were 11 to 70 times greater than European-established limit. This announcements effects which of the firm's resources most directly?
A) Technological.
B) Reputation.
C) Product placement.
D) Distribution.

Question

Quizplus · Accepted Answer

The announcement of high levels of pesticides in Pepsi's soft drinks directly affects the firm's reputation. The negative publicity can have a significant impact on consumer perception of the brand and lead to decreased sales. The other resources listed (technological, product placement, and distribution) are not directly affected by this announcement.

The Strategic Focus on Pepsi in Chapter 3 Details the Announcement