Why Would a Business Firm Want to Use Controlling Sales

question 289

Multiple Choice

Why would a business firm want to use controlling sales volume as a promotional objective?

• A) A company will aggressively push its products through wholesalers and retailers who persuade customers to buy it.
• B) The production and distribution systems will run more smoothly when the firm achieves a more stable sales volume during the year.
• C) The company is trying to appeal to a specific segment of the market.
• D) Consumers are more likely to purchase a product when they have been informed about it.
• E) The company wants to be able to communicate information to consumers when it is more economical to do so.

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Definitions:

Price-fixing

An agreement among competitors to raise, lower, or stabilize prices or competitive terms.

Collude Tacitly

The act of companies indirectly coordinating their actions, such as setting prices or output levels, without explicit agreement or communication, often to avoid legal penalties.

Horizontal Mergers

The combination of two or more firms operating at the same level of the supply chain in the same or different industries, potentially increasing market share and efficiency but also raising antitrust concerns.

Vertical Mergers

Mergers between companies in different stages of production or distribution within the same industry.