In a scenario where the market is not showing any signs of growth,what is the likely role of sales promotion?
A)It will encourage deal-prone customers to switch between brands.
B)It will contribute to long-term profits.
C)It will result in long-term brand loyalty toward the firm.
D)It will provide a competitive advantage to the company.
E)It will reduce the selling costs of firms.

Question

Quizplus · Accepted Answer

When the market is not growing,sales promotion may just encourage "deal-prone" customers (and intermediaries)to switch back and forth among brands.Here,all the expense of the sales promotion simply contributes to lower profits.It also increases the prices that consumers pay because it increases selling costs.

In a Scenario Where the Market Is Not Showing Any