A price-off program usually boosts sales, but it can hurt profits. This is because the decrease in price may not be offset by a significant increase in sales volume. Therefore, while sales may increase in the short-term, profits may be negatively affected.

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A Price-Off Program

Question 58

Multiple Choice

A price-off program:

A) is effective for individuals that have a high degree of brand loyalty to a competing brand.
B) has little impact on sales.
C) usually boosts sales, but it can hurt profits.
D) decreases price sensitivity over time.

Correct Answer: