A. Sellers grant credit to customers: a. During periods of high interest rates to reduce the overall cost of capital (WACC) and to increase return on assets b. When granting credit is a low-cost addition to the value proposition relative to other alternatives c. When the seller does not want new customers d. When the seller wants to increase its marketing costs B. Which from the following list is NOT a primary cost of granting credit to customers: a. The cost of managing credit and credit collections b. Some customers will not pay c. The cost of carrying the receivables d. Advertising costs C. Matching the credit period to the buyer’s cash cycle time makes purchasing from the seller: a. Less attractive for the buyer b. Increases the elasticity of buyer demand c. Does not impact attractiveness for the buyer d. More attractive for the buyer
A. Sellers grant credit to customers: a. During periods of high interest rates to reduce the overall cost of capital (WACC) and to increase return on assets b. When granting credit is a low-cost addition to the value proposition relative to other alternatives c. When the seller does not want new customers d. When the seller wants to increase its marketing costs B. Which from the following list is NOT a primary cost of granting credit to customers: a. The cost of managing credit and credit collections b. Some customers will not pay c. The cost of carrying the receivables d. Advertising costs C. Matching the credit period to the buyer’s cash cycle time makes purchasing from the seller: a. Less attractive for the buyer b. Increases the elasticity of buyer demand c. Does not impact attractiveness for the buyer d. More attractive for the buyer
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Question
A. Sellers grant credit to customers:
a. During periods of high interest rates to reduce the overall cost of capital (WACC) and to increase return on assets
b. When granting credit is a low-cost addition to the value proposition relative to other alternatives
c. When the seller does not want new customers
d. When the seller wants to increase its marketing costs
B. Which from the following list is NOT a primary cost of granting credit to customers:
a. The cost of managing credit and credit collections
b. Some customers will not pay
c. The cost of carrying the receivables
d. Advertising costs
C. Matching the credit period to the buyer’s cash cycle time makes purchasing from the seller:
a. Less attractive for the buyer
b. Increases the elasticity of buyer demand
c. Does not impact attractiveness for the buyer
d. More attractive for the buyer
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