A Disadvantage of Sales Promotion Is That

question 73

Multiple Choice

A disadvantage of sales promotion is that:

• A) it does not add immediate value to a brand.
• B) it does not help in building market value.
• C) it can draw competitors into a price war if overly aggressive sales promotions are used.
• D) it cannot be used by manufacturers and wholesalers in the marketing channel.
• E) it is less effective than advertising in motivating customers to switch to a new brand.

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Definitions:

Other-things-equal Assumptions

A principle in economics which suggests that the effect of one economic variable on another can be determined by holding all other influencing factors constant, commonly referred to as ceteris paribus.

Vertical Intercept

The point at which a line meets the vertical axis of a graph.

Slope

In economics, slope can represent the rate of change between two variables, often used in the context of supply and demand curves.

Vertical Intercept

The point where a line or curve crosses the vertical axis of a graph, indicating the value of the dependent variable when the independent variable is zero.