With Respect to Promotion, Which of the Following Strategies Would

question 213

Multiple Choice

With respect to promotion, which of the following strategies would most likely be used for unsought products?

• A) offering consumer and trade sales promotions
• B) establishing the uniqueness and status of the brand
• C) generating awareness
• D) differentiating the brand from competitive brands
• E) stressing price and availability in advertising

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Definitions:

Increasing-Cost Industry

An industry in which the costs of production increase as more firms enter the market, typically due to limitations in resources.

Decreasing-Cost Industry

An industry in which the average cost of production decreases as the industry grows and output increases.

Decreasing Returns to Scale

A situation in which a proportional increase in all inputs leads to a less than proportional increase in output, indicating reduced efficiency as scale of production expands.

Long-Run Equilibrium

A state in which all factors of production and inputs can be adjusted by firms, leading to a situation where no firm has an incentive to change its output or production method.