Promotional Expenditures at the Introduction Stage of the Product Life

question 91

Multiple Choice

Promotional expenditures at the introduction stage of the product life cycle are best spent on __________.

• A)contests and sweepstakes to stimulate selective demand
• B)product samples to create secondary demand
• C)advertising to cultivate primary demand
• D)personal endorsements to generate word of mouth demand
• E)coupons to maintain brand loyalty or static demand

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Definitions:

Salvage Recovered

The amount of money or value received from selling off the remains of assets after their useful life is over or after a casualty loss.

Discount Rate

Used to calculate the present value of future cash flows, reflecting the opportunity cost of capital investment.

Cost Savings

The reduction in expenses achieved by employing more efficient methods or making favorable decisions.

Salvage Value

An asset's anticipated market value upon concluding its period of utility.