To Be Effective,rebates and Refunds Must Have the Impact on Buyers

question 137

Multiple Choice

To be effective,rebates and refunds must have the impact on buyers' behaviors by:

• A) making them more brand loyal
• B) generating positive word-of-mouth communications
• C) either leading to a more immediate purchase or by causing buyers to change brands
• D) stimulating a trial purchase

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Definitions:

Direct Materials

The raw materials and components that are directly used in the manufacturing of a product and can be directly attributed to that product.

Operating At Capacity

Operating at capacity involves a business running at the maximum output or efficiency level possible with current resources and constraints.

Contribution Margin

Contribution margin is the amount by which sales revenue exceeds variable costs, representing the portion of sales revenue that contributes to covering fixed costs.

Constrained Resource

A limited resource that restricts the company's ability to produce outputs or achieve a certain level of activity.