Figure 20-7 -Consider Figure 20-7 Above,which Is an Account Management Policy Grid

question 298

Multiple Choice

Figure 20-7
-Consider Figure 20-7 above,which is an account management policy grid that groups customers according to level of opportunity and the firm's competitive sales position."C" represents what account management policy?

• A) Consider (1) replacing personal calls with telephone sales or direct mail to service accounts and (2) dropping the account if it is unprofitable.
• B) Accounts should emphasize a heavy sales organization position or shift resources to other accounts if a stronger sales organization position is impossible.
• C) Accounts are somewhat attractive because the sales organization has a strong position, but future opportunity is limited.
• D) Accounts should receive a high level of sales calls and service to retain and possibly build accounts.
• E) Accounts should receive moderate level of sales and service to maintain current position of sales organization.

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Definitions:

Tacit Collusion

Collusion occurs when price- and quantity-fixing agreements among producers are explicit. Tacit collusion occurs when such agreements are implicit.

Quantity-fixing

The determination of the quantity of a product or service to be produced or provided, often in the context of collusive agreements or regulatory mandates.

Colluding

The act of cooperating or conspiring, especially in a deceitful way, often to fix prices or manipulate markets in a manner that is usually illegal.

Output Decisions

Refers to choices made by businesses about how much of a product to produce, based on factors like costs, demand, and competition.