Marketing Issues Such as Advertising, Image, and Promotion Are Important

question 33

Multiple Choice

Marketing issues such as advertising, image, and promotion are important to quality because:

• A) they define for consumers the tangible elements of a service.
• B) the intangible attributes of a product (including any accompanying service) may not be defined by the consumer.
• C) they educate consumers on how to use the product.
• D) they make the product seem more valuable than it really is.
• E) they raise expenses and therefore decrease profitability.

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Definitions:

Safety Stock

Extra inventory carried to prevent stockouts in the event of heavy use or delayed delivery.

Working Stock

Working stock refers to the inventory that is readily available for use or sale, excluding any safety stock kept in reserve to cover potential shortages.

Collection Period

The average number of days it takes for a company to collect payments owed by its customers.

Bad Debts

Money owed to a company that is unlikely to be paid by the debtor, often resulting in a write-off for the company.