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:

Hurdle Rate

The minimum rate of return on an investment that is required by a manager or investor to proceed with the investment.

Cash Payback Method

A capital budgeting technique that estimates the time required to recoup the initial investment through cash flows.

Relevant Revenue

Income generated from core business activities, directly related to the business’s primary operations.

Cost Data

Information related to the expenses incurred in the production of goods or the provision of services.