Pieter Rabinovich, a Marketing Exec at Michelin, Is Comparing the Current

question 114

Multiple Choice

Pieter Rabinovich, a marketing exec at Michelin, is comparing the current level of market demand for snow tires to the potential demand level. A high market penetration index will suggest to Pieter that

• A) a substantial growth potential exists for all firms in the market.
• B) it would be great time to expand distribution outlets.
• C) mistakes have been made in selecting the correct promotional alternatives.
• D) the price of the product or service is too high with respect to competition.
• E) there will be increased costs in attracting the few remaining prospects.

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Definitions:

Bond

A fixed income instrument representing a loan made by an investor to a borrower, typically corporate or governmental.

Net Return

The profit or loss from an investment after all expenses are subtracted from the total income or revenue.

Construction Costs

Expenses incurred in the building of structures, infrastructure, or other forms of real estate projects.

Corporate Bond

A financial security issued by a corporation to raise capital, with the promise to repay the principal along with a specified interest rate to the bondholders.