A Producer of Disposable Diapers Is Planning to Introduce a New

question 188

Multiple Choice

A producer of disposable diapers is planning to introduce a new brand of diapers that is specially designed for large babies who are hard to fit with regular diapers. The company mails coupons for the new brand to all the consumers in its database of disposable diaper users. The coupons offer consumers a $2 discount off the regular price of a pack of diapers. The company sends an accompanying letter advising consumers to bring the coupons to their favorite store and use them. If the brand is not in stock, the letter encourages consumers to ask the store manager to stock the new brand. This promotion effort by the company is an example of:

• A) Pushing in the channel.
• B) Pulling by customers.
• C) Integrated marketing communications.
• D) Buyer-initiated communication.
• E) None of these is a good answer.

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Definitions:

Demand Manipulation

A strategy used to artificially influence consumer demand for a product or service.

Yield Management

A variable pricing strategy based on understanding, anticipating, and influencing consumer behavior to maximize revenue or profits from a fixed, perishable resource (such as airline seats or hotel room bookings).

Controlling Cost

The process of monitoring and managing expenses to stay within budget and improve efficiency and profitability.

Labor

A measure of the work done by human beings.