Which of the Following Is Not a Reason Why the Proportion

question 32

Multiple Choice

Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years?

• A) Retailers have become more powerful compared to manufacturers and are demanding more trade sales promotion efforts.
• B) Due to increased focus on value, consumers are more responsive to promotional offers.
• C) The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods.
• D) Sales promotions aimed at convincing customers to change brands are more effective because of decline in brand loyalty in general.
• E) Consumers are more responsive to price discounts and point-of-purchase displays.

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Definitions:

Total Asset Turnover

A ratio calculating how effectively a company utilizes its assets to produce sales income.

Return on Equity

A measure of a corporation's profitability, indicated by the amount of net income returned as a percentage of shareholders equity.

Return on Assets

A financial ratio indicating how efficiently a company uses its assets to generate profit.

Equity Multiplier

An equity multiplier is a financial ratio that measures the proportion of a company’s total assets financed by its shareholders' equity, demonstrating the degree of financial leverage being used.