Recognizable increase in sales that is their main

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recognizable increase in sales that is their main attraction to manage- ment, which is therefore reluctant to abandon this strategy despite its effect on the bottom line. -------------------------------------------------------------------------------- Q3: The primary purpose of the passage is to A. compare the arguments in favor of a certain strategy with those against it B. attack a certain strategy by enumerating its negative consequences C. justify the use of a certain strategy in light of certain criticisms that have been made against it D. advocate a particular strategy by arguing against an alternative E. explain the effects of a certain strategy and the primary motivations for adopting it Answer: -------------------------------------------------------------------------------- Q4: According to the passage, which of the following is the reason why short-term price promotions do not attract new long-term customers to a brand? A. Short-term price promotions do not produce an increase in sales. 13
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B. Customers come to regard the promotional price as the fair price and the regular price as excessive. C. Most customers select among competing products largely on the basis of price and very few are loyal to any particular brand. D. Customers who have not previously bought the promoted brand are almost never persuaded to do so by the short-term price promotions. E. Any customers that a brand gains by means of a short-term price promotion are liable to be lost when a competing brand has a similar promotion. Answer: -------------------------------------------------------------------------------- Q5: The passage suggests that evidence for price promotions’ “effect on the bottom line” (line 40) is provided by A. the lack of lingering aftereffects from price promotions B. the frequency with which price promotions occur C. price promotions’ inability to attract new customers D. price promotions’ recognizable effect on sales E. the legitimate uses to which management can put price promotions Answer: -------------------------------------------------------------------------------- Q6: It can be inferred from the passage that if a company ceased to run short-term price promotions for a particular product, an effect of this change would be to A. reduce excess inventory of the product B. lose some of the product’s long-term customers C. reduce the product’s overall sales D. inhibit growth in the number of the product’s customers E. threaten the product’s profitability Answer: ------------------------------------------------------------------------------------------------------------ Q7: Although the discount stores in Goreville’s central shopping district are expected to close within five years as a result of competition from a SpendLess discount department store that just opened, those locations will not stay vacant for long. In the five years since the opening of Colson’s, a nondiscount department store, a new store has opened at the location of every store in the shopping district that closed because it could not compete
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recognizable increase in sales that is their main...

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