When a Firm Uses a Push Strategy, It

question 16

Multiple Choice

When a firm uses a push strategy, it:

• A) Attempts to build strong customer demand for a product which it hopes will, in turn, encourage wholesalers and retailers to carry the product
• B) Must expect to have a larger promotional budget than if it followed a pull strategy
• C) Understands that advertising is the key to successful market development
• D) Offers direct inducements to potential wholesalers and retailers to encourage them to carry a product
• E) Must immediately follow it by implementing a pull strategy

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Definitions:

Reaction

The process of responding to internal or external stimuli, which can involve physical, emotional, or intellectual responses.

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, hence avoiding dealing with painful feelings.

Learning Organization

Describes an organization that facilitates the learning of its members and continuously transforms itself to better respond to changes in the environment.

Systems Thinking

An analytical framework for understanding the complex interrelationships within an organization or system rather than viewing components in isolation.