Which of the Following Statements About Sales Promotion Is False

question 174

Multiple Choice

Which of the following statements about sales promotion is False?

• A) Sales promotions may encourage brand switching more than they encourage brand loyalty.
• B) The design and management of sales promotions is often done by specialists from outside the firm.
• C) Sales promotions that are poorly run may reflect negatively on the firm sponsoring them, even if the firm uses an outside specialist to manage the promotion.
• D) Once a firm begins running regular sales promotions, it cannot change its strategy.
• E) Sales promotion should not be left to "amateurs."

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Definitions:

Performance Obligation

A commitment in a contract to provide a distinct good or service to a customer, which is a key concept in recognizing revenue.

Revenue Recognition

Revenue recognition is an accounting principle determining when revenue is earned and can be recorded in the financial statements.

Transaction Price

The price at which a particular transaction is made, affecting the exchange of goods or services between two parties.