Which of the Following Is Appropriate for Products in the Decline

question 69

Multiple Choice

Which of the following is appropriate for products in the decline stage of the product life cycle?

• A) Heavy use of persuasive advertising to reenergize demand for the product
• B) Heavy public relations to maintain brand loyalty
• C) Personal selling to obtain distribution
• D) Sales promotion to build market share
• E) None of these are appropriate

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Definitions:

Cash Payback Period

The duration it takes for the earnings from an investment to cover the initial amount invested.

Annual Net Cash Flows

The total amount of money, including inflows minus outflows, that a business generates over one year.

Expected Total Cash Flows

The projection of all the cash that is anticipated to be received or paid out over a certain period of time in the future.

Cash Payback Period

The time period required for the returns from an investment to repay the initial capital outlay.