A Company Would Be Likely to Use a Push Strategy

question 65

Multiple Choice

A company would be likely to use a push strategy when

• A) distribution channels are short.
• B) sufficient print and electronic media are available.
• C) consumers have a low level of literacy.
• D) the products being sold are consumer goods.
• E) professional services are being offered.

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Definitions:

Input Increases

A situation where there is an enhancement or augmentation in the resources used for production.

Marginal Product

The marginal product is the additional output resulting from a one-unit increase in the use of a variable input while holding other inputs constant.

Wage Rate

The amount of compensation that workers receive in exchange for their labor per unit of time.

Weak Axiom

A fundamental principle in consumer theory that if a consumer chooses bundle A over bundle B when both are affordable, then the consumer will not choose B over A if A's price decreases or B's price increases, all else being equal.