Which of the Following Would Be an Advantage of Using

question 98

Multiple Choice

Which of the following would be an advantage of using a sales force composite to develop a demand forecast?

• A)The sales staff is least affected by changing customer needs.
• B)The sales force can easily distinguish between customer desires and probable actions.
• C)The sales staff is often aware of customers' future plans.
• D)Salespeople are least likely to be influenced by recent events.
• E)Salespeople are least likely to be biased by sales quotas.

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Definitions:

Substitution Effect

This refers to the economic theory that as prices rise or fall, consumers will replace more expensive items with less costly alternatives.

Income Effect

Refers to the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Tax Rate

The rate at which taxes are applied to an individual or a corporation’s income.

Consumption Tax

A tax on the purchase of goods and services, levied at the point of sale.