The Primary Purpose of a Push Strategy Is to

question 197

Multiple Choice

The primary purpose of a push strategy is to

• A) push products on consumers and convince them that they need the products.
• B) rush the production schedule for products and beat competitors to the market.
• C) push the product down the distribution channel to retail stores.
• D) push products away from traditional channels of distribution to save costs.

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Definitions:

Fixed Costs

Costs that do not change with the level of output or sales in the short term, such as rent, salaries, and insurance premiums.

Initial Investment

The sum of money allocated to initiate a project, acquire an asset, or invest in a business operation.

Net Present Value (NPV)

A financial metric used to evaluate the feasibility of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

Capital Cost Allowance (CCA)

A tax deduction in Canada that represents a yearly depreciation charge for the cost of assets.