Household appliance retailers earn an average 33.5% gross margin.These retailers might be willing to accept a lower margin on promotional products if:

Question

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Household appliance retailers are likely to accept lower margins on promotional products if they believe that doing so will help build customer loyalty and increase long-term patronage. This suggests that the promotional products should be viewed as a tool for building customer relationships, rather than simply as a means of generating short-term profits. Therefore, the best choice is option C, which emphasizes the importance of convincing channel members that the promotional products will have a lasting impact on customer loyalty. While other factors, such as high turnover rates or heavy advertising, may also be persuasive, they do not address the fundamental goal of building long-term customer relationships.

Household Appliance Retailers Earn an Average 33