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TTGWD4-Q3 to Q6
Q11~Q14: TTGWD4-Q3 to Q6:
Extensive research has shown that theeffects of short-term price promotions on sales are themselves short-term. Companies’ hopes that promotions might have apositive aftereffect have not been borne out for reasons that researchers havebeen able to identify. A price promotionentices only a brand’s long-term or “loyal” customers; people seldom buy anunfamiliar brand merely because the price is reduced. They simply avoid paying more than they haveto when one of their customary brands is temporarily available at a reducedprice. A price promotion does notincrease the number of long-term customers of a brand, as it attracts virtuallyno new customers in the first place. Nor do price promotions have lingeringaftereffects for a brand, even negative ones such as damage to a brand’s reputationor erosion of customer loyalty, as is often feared.
Sowhy do companies spend so much on price promotions? Clearly price promotions are generally run ata loss, otherwise there would be more of them. And the bigger the increase in sales at promotion prices, the bigger theloss. While short-term price promotionscan have legitimate uses, such as reducing excess inventory, it is the recognizableincrease in sales that is their main attraction to management, which istherefore reluctant to abandon this strategy despite its effect on the bottom line.
Q13: Thepassage suggests that evidence for price promotions’ “effect on the bottom line” (line 40) is provided by
A. thelack of lingering aftereffects from price promotions
B. the frequency with which price promotions occur
C. pricepromotions’ inability to attract new customers
D. pricepromotions’ recognizable effect on sales
E. thelegitimate uses to which management can put price promotions
effect on the bottom line以及本题都是啥意思? |
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