Major American Car Manufacturers Are Offering Buying Incentives to Newly

question 222

Multiple Choice

Major American car manufacturers are offering buying incentives to newly graduated college students who traditionally have little or no credit. Car manufacturers are using which of the following market modification strategies?

• A) finding new users
• B) creating new use situations
• C) increasing a product's use by existing customers
• D) modifying the product
• E) reacting to competitors' positions

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Definitions:

Planning Gap

The difference between a company’s current performance and its desired goals, often leading to strategic changes to bridge the gap.

Contribution Margin

A financial metric that represents the difference between sales revenue and variable costs, indicating how much revenue contributes to fixed costs and profit.

Break-Even Point

The point at which total costs match total revenue, meaning there is neither profit nor loss.

Sales Differential

Sales differential is the difference in sales volume between a company’s actual sales and a predetermined benchmark, such as past sales performance or market expectations.