Packaging is of importance to marketers because
A. it provides better shelf placement in grocery stores
B. packaging costs over 95% of a manufacturer's selling price
C. the Federal Packaging and Labeling Act holds restrictions on packaging sizes
D. new packages can make a difference in a new marketing strategy
E. labels are inaccurate, and no one reads them anyway
Answer: (D) By meeting customers needs better, a better package can help create a "new" product for a "new" market. The packaging of a product (A) does not provide better shelf placement. Consumer demand and extra money paid for shelf space dictate the shelf placement of a product. The average packaging costs are between 1 and 70% rather than over 95% (B). The Federal Packaging and Labeling Act (C) does not hold restrictions on packaging—rather its various laws provide general guidance on packaging issues and the producers can choose whether or not to abide by them. If consumers do not understand the terminology, labeling can become misleading, but the statement that labels are inaccurate and no one reads them (E) is not true. Many labels are correct and many people do read labels.