You Read a Story in the Newspaper Announcing the Proposed

question 43

Multiple Choice

You read a story in the newspaper announcing the proposed merger of Dell Computer and Gateway. The merger is expected to greatly increase Gateway's profitability. If you decide to invest in Gateway stock,you can expect to earn

• A)above average returns since you will share in the higher profits.
• B)above average returns since your stock price will definitely appreciate as higher profits are earned.
• C)below average returns since computer makers have low profit rates.
• D)a normal return since stock prices adjust to reflect expected changes in profitability almost immediately.

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Definitions:

Extended Warranty

An additional warranty that covers the repair or replacement of items beyond the original manufacturer's warranty.

Need-satisfaction Format

A sales approach focusing on identifying and meeting the needs, wants, or challenges of customers as a priority.

Marketing Concept

A philosophy that firms should analyze the needs of their customers and make decisions to satisfy those needs, better than the competition.

Suggestive Selling

A sales technique where the seller proposes additional products or services to the customer, potentially enhancing their purchase experience.