For Marketers, the Primary Objective of a Point-Of-Purchase Display Is

question 44

Multiple Choice

For marketers, the primary objective of a point-of-purchase display is to

• A) eliminate the need for any special pricing promotion.
• B) retaliate against competitors' actions.
• C) encourage present customers to make recommendations to friends.
• D) build business inventory.
• E) increase product trial and provide in-store support for other promotions.

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Definitions:

Variable Expense Ratio

A financial metric that represents the proportion of variable expenses to sales revenue, indicating how much variable costs change in response to sales activity.

Break-even Point

The level of production or sales at which total costs equal total revenue, resulting in no net loss or gain.

Degree of Operating Leverage

A measure indicating how much sales revenue will translate into changes in operating income due to the proportion of fixed and variable costs.

Contribution Format Income Statement

An income statement format that segregates fixed and variable costs, directly showing the contribution margin.