Essentials of Business Communication (MindTap Course List)
11th Edition
ISBN: 9781337386494
Author: Mary Ellen Guffey, Dana Loewy
Publisher: Cengage Learning
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Chapter 6, Problem 6.14AAC
Summary Introduction
To Determine:
A claim letter for a malfunctioning product or service received from a bank, restaurants, online merchant, etc.
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The purpose of this miniproject is to increase your understand-
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It is a mistake to think that product safety is only a concern in manufacturing. In fact, advertisers, salespeople, suppliers, manufacturers, and anyone else who occupies a marketing function should make product safety a high priority. In November, the maker of Tide and Pampers told consumers to throw out their Old Spice and Secret aerosol deodorants for possibly containing benzene. The company said it would offer refunds for more than a dozen Old Spice and Secret aerosol brands. Benzene is classified as a carcinogen that could cause leukemia and blood disorders. Based on exposure modeling and cancer risk assessments published by the Environmental Protection Agency, P&G said daily exposure to benzene in its recalled products -- at the levels detected during testing would not be expected to cause adverse health consequences. The personal care and consumer goods corporation stated that it has not received any reports of adverse events related to this recall to date. It said the…
A heavy truck parts maker is able to tender on a pre-production study contract of a new type of truck ventilator unit worth $25,000 net profit if it wins the contract. Tendering costs would be about $2,000. The chances of winning the contract are 50 percent. If the company wins the contract, it must decide on the level of marketing it should make to increase its chances of getting further production contract worth $55,000 net profit. Promotion at a high level costs $18,000 with a resulting probability of winning the contract of 0.8. At medium level promotion, it costs $12,000 with a probability of 75 percent and at a low level, it costs $8,000 with a probability of 60 percent. Should the initial study contract be lost, the company can still bid on the production contract at an additional tender cost of $6,000. The probability of winning the production contract from this stage is 30 percent.
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Chapter 6 Solutions
Essentials of Business Communication (MindTap Course List)
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