Which of the Following Should Be Evaluated to Establish a Promotion-To-Sales

question 22

Multiple Choice

Which of the following should be evaluated to establish a promotion-to-sales ratio?

• A) The level of spending by competitors
• B) The firm's objectives
• C) The firm's own past experiences
• D) The strengths and weaknesses of the company

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Definitions:

Consumption

Pertains to the aggregate volume of products and services that are purchased and consumed by families and people.

MPC

The marginal propensity to consume, which is the fraction of additional income that a household spends on consumption.

Disposable Income

Financially viable resources for households' spending and saving strategies after deducting income taxes.

Consumption

The action of using up a resource or the purchase of goods and services by households.