Manufacturers sometimes discount the price of a product to retailers for a promotion period when the product is advertised to consumers. Such promotions often result in a dramatic increase in amount of product sold by the manufacturers to retailers. Nevertheless, the manufacturers could often make more profit by not holding the promotions.
Which of the following, if true, most strongly supports the claim above about the manufacturers' profit?
A. The amount of discount generally offered by manufacturers to retailers is carefully calculated to represent the minimum needed to draw consumers' attention to the product.
B. For many consumer products the period of advertising discounted prices to consumers is about a week, not sufficiently long for consumers to become used to the sale price.
C. For products that are not newly introduced, the purpose of such promotions is to keep the products in the minds of consumers and to attract consumers who are currently using competing products.
D. During such a promotion retailers tend to accumulate in their warehouses inventory bought at discount; they then sell much of it later at their regular price.
E. If a manufacturer fails to offer such promotions but its competitor offers them, that competitor will tend to attract consumers away from the manufacturer's product.
Thanks,
Cappy
Manufacturers Promotion
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IMO: D
A, Irre
B, out of scope - state about customers while in the paragraph states about retailers
C, Purpose of promotion - irr
D, indicate why customers do no get the promotion
E, Irr
A, Irre
B, out of scope - state about customers while in the paragraph states about retailers
C, Purpose of promotion - irr
D, indicate why customers do no get the promotion
E, Irr
Please share your idea and your reasoning
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I did not get how the manufacturers did not benefit? They still ended up selling enough product to the retailers?ritula wrote:Defintely it is D.
IF the retailers buy it at a discounted price and later sell it at regular price then the very purpose of holding such sales gets defeated and the manufacturers do not get benefitted
How does the fact that customers don't get promotions affect the manufacturers?
thanks.