Rice Dazzle Inc.has been making the same breakfast cereal for 50 years.Recently,sales have plummeted.To counteract this,the company created a new package that included an endorsement by a celebrity.As a result,sales increased close to previous highs.However,the cereal itself remained the same.According the VRIO framework,is the new packaging a valuable resource for Rice Dazzle?
A) Yes, because the new packaging has an endorsement by a celebrity.
B) Yes, because the new packaging made the product more attractive in the eyes of consumers.
C) No, because the new packaging did not improve the product itself.
D) No, because the new packaging did help to not increase sales past the previous high for sales.

Question

Quizplus · Accepted Answer

According to the VRIO framework, a resource is valuable if it helps a firm increase the perceived value of its product or service in the eyes of consumers.