Question

In class, professor miller discussed the reason that the money spent on trade promotions was much higher than the money spent on consumer promotions. he suggested that companies focus their efforts on trade promotions because... consumers tend to know about trade promotions anyway so it doesn't really matter what companies do. consumer promotions are not cost effective. consumers are very particular about the types of promotions that they like. consumer promotions negatively impact the value of the brand.

Answer 1

The correct answer is D

Consumer promotions negatively impact the value of the brand

Research has traditionally posited that sales promotions erode brand equity. There is traditionally high propensity between brand loyalty and demand, which is influenced by  consumer promotions.