JAMB Commerce 2001 Question 38

Question 38

Marketing

Use the information below to answer questions 38 and 39.
Companies I, II, III and IV produce and sell electronic videos. Company I sells its videos for ₦14 000 each and offers advice on how to fix and operate them. Company II sells at ₦14 000 and its represenatives go to install at no additional cost. Company III sells at ₦15 500 and offers credit sales at ₦15 500 per video while company IV sells at ₦15 000 each.
Which of these companies are more engaged in public relations activities?

  1. A.I and II
  2. B.I and III
  3. C.II and IV
  4. D.III and IV.
Show the answer and explanation

Answer: A (I and II)

Explanation

Companies I and II build goodwill with free advice and free installation; III and IV compete only on price or credit.