Sales promotions that provide consumers an incentive to buy a product, such as a

Question

Sales promotions that provide consumers an incentive to buy a product, such as a cents-off coupons or a discount, are widely used, especially for the type of products we buy in the grocery store. For the company offering the discounts and coupons, one of the risks with such a strategy is that _______________.

it will not provide a believable message

it is challenging to track usage of the coupons

retailers are typically not interested in helping out with such campaigns

it might only appeal to already loyal customers who stockpile the product when it is on sale for later consumption

consumers who typically buy other brands will switch to the promoted brand

it will not provide a believable message

it is challenging to track usage of the coupons

retailers are typically not interested in helping out with such campaigns

it might only appeal to already loyal customers who stockpile the product when it is on sale for later consumption

consumers who typically buy other brands will switch to the promoted brand

Explanation / Answer

The Answer is Option B. It is challenging to track the usage of the coupons.

Here the promotion strategy involves that the customers gets incentified by coupons and discounts given through the retailer. The main risks involved here is it is difficult to track the usages of coupons and discounts. i.e it is difficult to track whether it reached to the end customer or it was misued by retailers or distributor for their internal benefits.

The tracking with end customer requires enormous capital for conducting market surveys and research for obtaining the data

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