In a scenario where the market is not showing any signs of growth, sales promotion is more likely to:

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