George Wants to Increase Impulse Purchases in His Store

question 36

Multiple Choice

George wants to increase impulse purchases in his store.Which of the following promotional strategies would be most effective for George to use?

• A)He should place point-of-purchase displays close to the items he wants to market.
• B)He should buy more advertising space in local newspapers.
• C)He should hire a new salesperson.
• D)He should post testimonials about the quality of his products in highly travelled locations.

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Definitions:

IRR

The Internal Rate of Return (IRR) serves as a financial measure designed to calculate the potential profitability of investments.

Capital Cost Allowance

The annual depreciation expense that a company can claim as a deduction for tax purposes on its capital assets.

Cannibalization

The reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.

Pre-Tax Cash Flow

The amount of cash that a company generates before accounting for taxes, used in evaluating its financial performance.