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:

Asset Purchase

The acquisition of assets from a company, such as equipment, inventory, or intellectual property, as opposed to buying the company's stock or shares.

In-Kind Purchase

Acquiring goods or services through a direct exchange of other goods or services without the use of money.

Shareholder's Derivative Suit

A lawsuit filed by a shareholder on behalf of a corporation against a third party, often an insider of the corporation, alleging harm to the corporation.

Dividend

A distribution of corporate profits or income ordered by the directors and paid to the shareholders.