Sales promotions in markets of high brand similarity can produce a high sales response in the short run but little permanent gain in brand preference over the longer term.

Question

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Sales promotions may attract customers to purchase a particular brand in the short run, but it does not necessarily build brand loyalty or preference over a longer period. In markets where many brands are similar, customers may switch to other brands that offer similar promotions, hence leading to low permanent gains in brand preference.

Sales Promotions in Markets of High Brand Similarity Can Produce