Several Factors Have Contributed to the Increase in Sales Promotion

question 4

Multiple Choice

Several factors have contributed to the increase in sales promotion as a marketing tool. One of these factors is that

• A) consumers buy products only when they go on sale.
• B) top management has increased the budgets for sales promotions.
• C) the cost of credit is low so more money can be spent on promotions than in the past.
• D) sales promotions is a money making undertaking.
• E) top management accept it as an effective sales tool.

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Definitions:

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving regular interest payments and the return of principal at maturity.

Equity Securities

Financial instruments that represent ownership interest in a company, such as common stock, and typically provide voting rights and potential dividends.

Creditor Relationship

The financial relationship that exists between a borrower or debtor and a lender, where the lender provides a loan or credit to the borrower.

Cash Equivalents

Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.