Scenario 8-5
Helene Curtis is preparing to introduce a new brand of all-natural-ingredient shampoo into the market. In test marketing, many consumers liked the product, but their comments indicated that it is different enough from existing brands that significant promotion and information will be needed to convince them to switch from their current brands. Helene Curtis has always used an objective-and-task approach to develop advertising budgets. Due to these research results, the firm must now do a detailed build-up analysis.
-(Scenario 8-5)The build-up analysis will also address costs not listed elsewhere,particularly those associated with advertising to the trade and doing specialized research.Which factor does this involve?

Question

Quizplus · Accepted Answer

Ancillary costs refer to costs not included in other categories, such as advertising to the trade and specialized research. Therefore, the build-up analysis is addressing ancillary costs.

Scenario 8-5 Helene Curtis Is Preparing to Introduce a New Brand of Brand