Question

Comment very briefly on the following statements:

(a) Product line refers all the products offered by a particular seller.

(b) Promotional allowance is a discount given by the manufacturer to the consumer.

(c) Exclusive distribution policy is suitable for the distribution of bread.

(d) There is no sponsor in the case of publicity

.

18 Feb 2018
Answer :
Word Count : 397

(a) True, Product line is a group of product items that can satisfy the same needs and wants, they have more or less similar features. For example, Bajaj Auto Ltd., in its two wheeler product line, makes Discover, Boxer, Boss, Pulsar, Cub scooter, Bajaj Sunny, etc.

Thus, product line is the group of similar products. The similarity may be seen in one or more ways. Product line consists of product items belonging to same class.

(b) True, The allowance given by producers to wholesalers and retailers for their promotional activities is called promotional allowance. Such allowance is given to them for advertising, decorating and displaying goods in their shops at local level. This type of allowance may be given in cash or reduction in price of goods.

(c) Exclusive distribution is an extreme form of selective distribution in which

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