When a Firm Uses a Push Strategy, It

question 16

Multiple Choice

When a firm uses a push strategy, it:

• A) Attempts to build strong customer demand for a product which it hopes will, in turn, encourage wholesalers and retailers to carry the product
• B) Must expect to have a larger promotional budget than if it followed a pull strategy
• C) Understands that advertising is the key to successful market development
• D) Offers direct inducements to potential wholesalers and retailers to encourage them to carry a product
• E) Must immediately follow it by implementing a pull strategy

---

Definitions:

Risky Portfolio

An investment portfolio that contains a higher percentage of assets with greater volatility and potential for loss, aiming for higher returns.

Complete Portfolio

A diverse investment portfolio that covers a wide range of securities in order to mitigate risk through diversification.

Standard Deviation

A numerical index representing the variation or spread in a collection of data points or financial returns.

Sharpe Ratio

A measure used to evaluate the risk-adjusted return of an investment portfolio, calculated by subtracting the risk-free rate of return from the portfolio's return and dividing by the portfolio's standard deviation of returns.