In the Face of a Flattening Growth Rate and Dropping

question 40

Multiple Choice

In the face of a flattening growth rate and dropping profitability,one of the tools Pitney Bowes turned to was a(n) ______ to hold on to its best customers and create a better relationship with other customers by giving members discounts and incentives for frequent patronage.

• A) trade promotion
• B) direct sales promotion
• C) interactive program
• D) loyalty program
• E) push strategy

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

EBIT

Earnings Before Interest and Taxes, a measure of a firm's profitability that includes all expenses except for interest and income tax expenses.

Sales

The transactions of selling goods or services within a specific period.

Total Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue.