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All the Following Are Reasons Behind Companies' Efforts to Cut

Question 18

Multiple Choice

All the following are reasons behind companies' efforts to cut back on trade and other promotions except


A) not to force brand-loyal customers to pay unusually high prices when a product isn't on special.
B) to allow consumers to benefit from a lower average shelf price, since retailers will no longer have discretion over the use of allowance dollars.
C) to improve efficiencies in manufacturing and distribution systems because retailers will lose the incentive to do heavy forward buying of discounted items.
D) to increase the manufacturer's inventories, and reduce the distributor's inventories.

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