Identify the trade promotion that is the most risky for a company.

Question

Quizplus · Accepted Answer

Price-based promotions are the most risky for a company because they involve reducing the price to increase sales, which can lead to a loss of profit margin and can also weaken the brand image if customers begin to associate the brand with low prices. Additionally, price-based promotions can create a negative perception of the company's product quality and value, making it difficult to charge higher prices in the future.

Identify the Trade Promotion That Is the Most Risky for a Company