What Is the Purpose of Offering Free Merchandise or Other

question 18

Multiple Choice

What is the purpose of offering free merchandise or other considerations when a firm has bad news regarding transaction?

• A)To salvage as much of the original order as possible
• B)To encourage a new order to replace the current transaction
• C)To rebuild the customer's confidence in your company
• D)To encourage the placement of an even larger order
• E)To bundle the shipment with the previous transaction for an even greater cost savings

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Definitions:

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger people with disabilities.

Federal Income Tax

A tax by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Net Pay

The amount of money an employee receives after all deductions, such as taxes and retirement contributions, are subtracted from their gross pay.

Federal Unemployment Tax

A tax levied by the federal government on employers to fund state workforce agencies and unemployment insurance programs.