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 _______________.

Answer 1

A risk is that the promotions might have a limited appeal, especially when it comes to groceries.

This is because the promotion might only appeal to customers who are already loyal to the brand and would like to buy more of the product in order to set aside some of it for future consumption.

Other customers might not even know about the product, or not be entinced enough by the promotions to make the purchase.