Successful Marketers That Understand the Significance of Word-Of-Mouth Communication Seek

question 45

True/False

Successful marketers that understand the significance of word-of-mouth communication seek out opinion leaders and try to encourage them to try their products in the hope they will spread favorable communication about them.

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Definitions:

Promotional Allowances

Cash payments or an extra amount of “free goods” awarded sellers in the marketing channel for undertaking certain advertising or selling activities to promote a product.

Product-line Pricing

A pricing strategy where different products in the same product line are priced differently, often based on features, materials, or product versions.

Cost-plus-percentage

A pricing method where a fixed percentage is added to the total cost of production as the profit margin.

Variable Costs

Costs that change in proportion to the goods or services that a business produces.