The Two-Way Flow of Communication Between a Salesperson and a Customer

question 54

Multiple Choice

The two-way flow of communication between a salesperson and a customer that is paid for by the firm and seeks to influence the customer's purchase decision is referred to as

• A)public relations.
• B)advertising.
• C)personal selling.
• D)sales promotion.
• E)publicity.

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Definitions:

Price-Taker Firm

A business that has no control over the market price of its products and must accept the prevailing market price.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and opportunity costs.

Opportunity Cost

The highest valued alternative that must be sacrificed as a result of choosing an option.