Question : Case Study:
XYZ Beauty Products offers a limited-time deal where customers receive a free gift with the purchase of specific skincare items. What sales promotion technique is XYZ Beauty Products using?
Option 1: Trade Shows
Option 2: Premiums
Option 3: Rebates
Option 4: Loyalty Programs
Correct Answer: Premiums
Solution : The correct answer is (b) Premiums.
Premiums involve offering a free or discounted item as an incentive to encourage a purchase. In this case, customers receive a free gift with the purchase of specific skincare items, making it a premium offer. Trade shows, rebates, and loyalty programs are distinct sales promotion techniques with different incentives or mechanisms.
ABC Bookstore provides a discount to university students who show their student IDs when purchasing books. What sales promotion technique is used here?
Option 3: Trade Allowances
Option 4: Discounts
ABC Sports Gear launches a contest where customers can win exclusive merchandise by participating in social media challenges. What sales promotion technique is being used here?
Option 1: Coupons
Option 2: Sweepstakes
Option 3: Free Samples
Option 4: Point-of-Purchase Displays
Question : Statement 1: Sales promotion techniques aim to boost short-term sales.
Statement 2: Sales promotion techniques do not impact consumer behavior and loyalty.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is false.
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