Which of the following is one of the reasons that personal selling can be more effective than advertising in a complex selling situation?
A. Personal selling is cheaper on a per contact basis.
B. Personal selling can reach more customers within a given time period.
C. Personal selling can deal with inelastic demand.
D. Personal selling can probe customers to learn more about their needs.
E. Only (A) and (B) are true.
Answer: (D) In a complex selling situation that calls for high levels of persuasion, personal selling is often thought to be more effective than advertising primarily because of the direct interaction between the buyer and seller. Thus, (D) is the right answer. Personal selling is one of the most expensive methods of promotion on a per contact basis, so (A) is incorrect. In a given time period, advertising can reach a lot more people than personal selling. Thus, (B) is incorrect. Personal selling is much more effective when the demand is elastic because that is when the demand changes substantially in response to changes in price. So, (C) is incorrect. (E) is also incorrect since (A) and (B) are false.
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