Describe the Circumstances in Which a Firm Is More Likely

question 145

Essay

Describe the circumstances in which a firm is more likely to emphasize personal selling rather than advertising.

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Definitions:

Complementary Good

A product or service that is typically used together with another product, such that an increase in demand for one leads to an increase in demand for the other.

Change in Demand

A change in the quantity demanded of a good or service at at least one price that is caused by factors other than a change in the price of that good or service.

Technology

The application of scientific knowledge for practical purposes, especially in industry, which includes machinery, equipment, methods, and processes.

Equilibrium Price

The price at which the quantity of a product offered for sale by sellers equals the quantity of the product that buyers are willing to buy, causing market stability.