What Is a Drawback of a Push Strategy

question 78

Multiple Choice

What is a drawback of a push strategy?

• A) It can be expensive when the distribution channel is long.
• B) It decreases interaction with consumers.
• C) It does not allow consumers to be educated on the benefits of a complex product.
• D) It is useful only in advanced nations where consumers are sophisticated and highly educated.
• E) It can only be used to sell industrial products.

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Definitions:

Statement of Cash Flows

A report detailing how modifications in balance sheet accounts and earnings influence cash and cash equivalents.

Common Stock

A type of securities representing ownership in a corporation, whereby holders have voting rights and may receive dividends.

Noncash Investing

Investment activities that do not involve the immediate inflow or outflow of cash, such as acquiring assets through the issuance of equity.

Capital Acquisitions Ratio

A financial metric that compares total acquisitions of property, plant, and equipment with cash flow from operating activities, indicating the extent to which operating cash flows are used to finance capital expenditures.