Which of the Following Is Not a Reason Why the Proportion

question 67

Multiple Choice

Which of the following is not a reason why the proportion of promotional dollars spent on sales promotion has increased in recent years?

• A)Retailers have become more powerful relative to manufacturers and are demanding more trade sales promotion efforts.
• B)Because of an increased focus on value, consumers are more responsive to promotional offers.
• C)The greater emphasis on improving long-term performance has resulted in an increased use of sales promotion methods.
• D)Sales promotions aimed at convincing customers to change brands are more effective because of declines in brand loyalty in general.
• E)All of these are reasons for the increasing proportion of promotional dollars being spent on sales promotion efforts.

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Definitions:

Pure Monopoly

A market structure in which a single supplier provides a unique product or service, with no close substitutes and high barriers to entry.

Output Quantity

The total amount of a product produced by a company, industry, or economic sector within a given timeframe.

Rent-seeking

The practice of individuals or firms leveraging their resources to obtain economic gains without reciprocating any benefits back to society through wealth creation.