Packaging is an integral part of product decisions. A good packaging can give the product a competitive advantage, both in the eyes of the consumer as the retailer. The Fottle is a good example of how an innovative package can lead to a successful product. In this case, the correct answer (i.e. the false statement) is d).

24.   Which of the following statements about the strategic importance of packaging is false?

a)    A package may have more promotional impact than a firm's advertising efforts.
Good examples of that is the colour on some packages, which immediately attract the consumer's attention.

b)    A new package can become the major factor in a new marketing strategy by significantly improving the product.
Think of A.G. Düring's Toilet Duck.

c)    Packaging is concerned with both protection and promotion.
Of course this is true.

d)    Better packaging always raises total distribution costs.
In some cases, a better packaging actually decreases total distribution costs (another aspect that was discussed in the Fottle case)

e)    A package should satisfy not only the needs of consumers but also those of business and organizational customers.
Since supermarket shelves are linear, any package that has a square or rectangular shape will improve shelf space.

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