If the Push Policy Is Used in Promoting a Product

question 115

Multiple Choice

If the push policy is used in promoting a product, the firm

• A) promotes directly to consumers.
• B) promotes only to the next marketing institution down the marketing channel.
• C) promotes the product to wholesalers only.
• D) promotes the product to retailers only.
• E) will be assured of having an effective promotional mix.

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Definitions:

Allowance for Doubtful Accounts

A contra asset account used to estimate the portion of a company's accounts receivable that may not be collected.

Write-off

The process of recognizing that a portion of a company's inventory or accounts receivable is no longer valuable and removing it from the financial statements.

Service Charge

A fee collected for services provided, often added to the base cost of services in industries such as hospitality, banking, and utilities.

Credit Card

A financial tool allowing users to borrow funds for purchases, which must be repaid, often with interest.