Which of the Following Statements Is True Regarding Sales Promotion

question 62

Multiple Choice

Which of the following statements is true regarding sales promotion?

• A)It lacks focus on price.
• B)It is less effective than advertising in generating a measurable short-term sales response.
• C)Customers are induced to become brand-loyal.
• D)Customers are induced to become price-sensitive.

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Definitions:

Decision Maker's Profit

Reflects the gains realized by a decision maker after considering all costs and revenues associated with their decision.

Expected Monetary Value(EMV)

A financial concept used in decision-making to calculate the average outcome of future events, taking into account the probabilities and impacts of various possible outcomes.

State of Nature

A term referring to the possible outcomes or conditions in decision making that are not under the control of the decision-maker.

Federal Reserve Regulations

Rules set by the Federal Reserve to govern banks and other financial institutions, aiming to ensure the stability and integrity of the financial system.