Refer to the Scenario Below to Answer the Questions That

question 5

Multiple Choice

Refer to the scenario below to answer the questions that follow.
Bob and Larry have taken their fly fishing equipment and accessory business, Flies-R-Us, to the Internet because they wanted to expand their business. However, they don't have much money to use conventional media to drive traffic to their site.
-To encourage bigger purchases and to build brand loyalty,Flies-R-Us will send a baseball cap with the brand logo on it to any customer who places an order of $150 or more.The baseball cap is an example of ________.

• A) brand entertainment
• B) a premium
• C) a billboarding effect
• D) a point-of-purchase material
• E) naming rights

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Definitions:

Product Demand

Refers to the desire and necessity for consumers to purchase a specific good or service.

Carrying Cost

Costs incurred by holding inventory, including storage, insurance, and opportunity costs, over a specific period.

Credit Sales

Credit sales are transactions where the purchase of goods or services is made on credit, with payment to be made at a later date.

Lenient Credit Terms

Lenient credit terms are more favorable conditions provided by a lender, allowing for longer repayment periods or lower interest rates to facilitate easier repayment for the borrower.