Why Are Organizations Like KFC,Heinz Foods,Toys R Us,and Anheuser Busch

question 82

Multiple Choice

Why are organizations like KFC,Heinz Foods,Toys R Us,and Anheuser Busch placing more emphasis on sales promotions than ever before?

• A)because they want to use sales promotions rather than engage in price wars
• B)because they are convinced sales promotions can be used to build brand equity more effectively and more quickly than other promotional mix elements
• C)because the use of sales promotions allows them to cut back and/or completely eliminate their use of coupons
• D)because consumers have less time to shop
• E)because the use of allowances,deals,and premiums confuse consumers

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Definitions:

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices are determined in a free price system.

Production Goals

Targets set by a company regarding the quantity and quality of products to be produced within a certain timeframe.

Limited Resources

The finite availability of resources such as time, money, and materials, which constrains production, consumption, and allocation decisions.

Consumer Sovereignty

The principle that the production and sale of goods and services in an economy are determined by the preferences and decisions of consumers.