Why Are Sales Promotions Only Short- Term Events

question 10

Multiple Choice

Why are sales promotions only short- term events?

• A) Running them for the long- term erodes the organization's cost structure
• B) It is too costly to run them for large periods of time
• C) Only a certain amount of new customers can be prospected for them and is not enough to support the promotion in the long- term
• D) Loyal guests do not appreciate long- term promotions

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Definitions:

Regression

A statistical method used to examine the relationship between one or more independent variables and a dependent variable.

Dependent Variable

The variable in an experimental setting that is expected to change in response to manipulations in the independent variable.

Independent Variable

A factor in a model or study that is deliberately altered to examine its impact on the variable that is being measured.

Coefficient Of Determination

A statistical measure that determines the proportion of variance in the dependent variable predictable from the independent variable(s).