The problem confronting the managers responsible for the marketing of the store-brand cereal is that consumer acceptance of the store-brand is lagging, which is evidenced by lower than projected sales levels. The nutrient content of the store-brand cereal is equivalent to the nutrient content of the name-brand cereal against which it competes directly. The pricing of the store-brand cereal is approximately 10 percent lower than the name-brand cereal against which it competes directly. The problem requires the development of a solution that will lead to increased market share for the store-brand cereal.
Development of Constructs of Business Problem
Two constructs are developed in relation to the business problem. The constructs are (a) product quality and (b) product awareness. The concepts that are structured into the constructs are as follows:
Nutrient content and taste are concepts that fit easily into a product quality construct. Price is a concept that frequently is not included in a product quality construct. In the case of a store-brand cereal competing directly against a name-brand cereal, however, consumers may equate a lowef price with lower quality.
Packaging, shelf location, and promotion all are concepts that may directly affect a product awareness construct. Awareness is not the equivalent of acceptance; however, awareness is one step in the process leading to acceptance.
In investigating with this business problem, the objective is not to develop scientific data that "proves" that the store-brand cereal is equivalent to or better or worse than the name-brand cereal in relation to nutrient content or any other factor. Rather, the focus is on identifying the source of the problem related to consumer acceptance of the store-brand cere
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