Personal Selling Is Likely to Be the Primary Component of a Firm's

question 144

Multiple Choice

Personal selling is likely to be the primary component of a firm's promotional mix when:

• A) the firm markets inexpensive products that require no special handling.
• B) the transactions frequently involve trade-ins.
• C) the price of the products is relatively low.
• D) the firm markets to a large number of customers in various locations.

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Definitions:

Factor Price

The price paid for the use of a factor of production, such as labor, land, or capital.

Production Function

A mathematical model that describes the relationship between input factors of production (like labor and capital) and the output of goods or services that result.

Factor Prices

The prices of inputs used in the production of goods or services, such as labor wages, rent for land, and profit for capital.

Output Cost

The total expenses incurred in the production of goods or services, including both variable and fixed costs.