Of all the trade promotions mentioned in the text,which of the following carries the most risk to the company?

Question

Quizplus · Accepted Answer

Price-based promotions, such as discounts or price-cuts, carry the most risk because they directly impact the company's revenue and profits. Offering too steep of a discount can result in lower profit margins or even loss of revenue. Additionally, customers may become accustomed to the lowered price and may be less likely to purchase the product at full price in the future. Therefore, companies must carefully evaluate the potential risks and benefits before implementing price-based promotions.

Of All the Trade Promotions Mentioned in the Text,which of the Following