Which of the Following Statements About the Use of Premiums

question 27

Multiple Choice

Which of the following statements about the use of premiums as a sales promotion tool is true?

• A) The use of premiums is very popular in fast food restaurants such as McDonald's.
• B) Mail-in premiums offer immediate reinforcement to the purchaser.
• C) Redemption rates for mail-in premium offers are very high.
• D) Premiums are not subject to restrictions from industry and government agencies.

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Definitions:

Competitive Advantage

An attribute that allows an organization to outperform its competitors, such as cost structure, product quality, or market positioning.

Oil Imports

The purchasing of crude oil and petroleum products from foreign countries to meet domestic consumption and energy requirements.

Trade Deficit

A condition in which a nation buys more from foreign countries than it sells to them, leading to a deficit in the trade balance.

China

A country in East Asia, the world's most populous nation, with a significant impact on global economy and geopolitics.