Siesta Inc., a mattress store, recently launched a new range of mattresses. According to the management of the company, these mattresses are made with advanced technology and guarantee a good sleep. However, the sales are not very promising. An in-store survey shows that consumers find the mattresses expensive and are reluctant to invest too much in a product that is new in the market. To boost the sales, the marketing team decides to reduce the price by ten percent and offer a three-month return policy. As soon as these changes are implemented, the sale of the new mattresses picks up. The reduction in the price and the offer of return policy are examples of _____.
A) situational influences
B) switching costs
C) marketing tactics
D) loyalty programs

Question

Quizplus · Accepted Answer

The reduction in price and the offer of a return policy are both marketing tactics aimed at increasing sales of the new range of mattresses. Situational influences are external factors that affect consumer behavior, and switching costs refer to the costs or effort associated with switching from one product or brand to another. Loyalty programs are incentives offered by companies to encourage repeat purchases from their customers. None of these concepts apply to the given scenario. Therefore, the correct answer is C - marketing tactics.