Additional costs beyond the cost of specific promotions include the risk that promotions might decrease long-run brand loyalty.

Question

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Offering promotions may attract customers in the short term, but it could also lead to a decrease in long-term brand loyalty if customers begin to associate the brand primarily with discounted prices rather than quality or other brand attributes. This can ultimately result in a loss of profits for the company.

Additional Costs Beyond the Cost of Specific Promotions Include the Risk