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JAMB Commerce 1995 Question 40

Question 40

Marketing

A disadvantage of personal selling is that it

  1. A.increases a company's operating costs
  2. B.decreases a company's operating costs
  3. C.increases a company's number of customers
  4. D.reduces a company's area of patronage.
Show the answer and explanation

Answer: A (increases a company's operating costs)

Explanation

Personal selling needs paid sales staff who travel and meet buyers one at a time, so it is very costly and raises a company's operating costs.