A junior marketing executive at MegaGrain Cereals suggests increasing the package size and price of its best-selling brand without increasing the amount of cereal inside the box. Her superior warns that this might be a bad idea because MegaGrain's long-term survival, like most companies, depends on

Question

Quizplus · Accepted Answer

MegaGrain's long-term survival depends on creating and maintaining satisfying exchange relationships with its customers. Increasing package size and price without increasing the amount of cereal inside might lead to customer dissatisfaction and harm the exchange relationship. Continually selling to new customers and markets may also be important, but creating and maintaining satisfying exchange relationships is the key to a company's long-term survival. The other options, such as cost-cutting measures, high-volume low-margin sales, and increasing shelf space, may offer short-term benefits but do not guarantee long-term survival.

A Junior Marketing Executive at MegaGrain Cereals Suggests Increasing the Package