So why do companies spend so much on price promotions? Clearly, price promotions are generally run at a loss, otherwise there would be more of them. And the bigger the increase in sales at promotion prices, the bigger the loss. While short-term price promotions can have legitimate uses, scuh as reducing excess invernory, it is the recognizagle increase in sales that is their main attraction to management, which is therefore reluctant to abandon this strategy despite its effect on the bottom line.
the passage suggests that evidence for price promotions' "effect on the bottom line" is provided by
A. the lack of lingering aftereffcets form price promotions
B. the frequency with which price promotions occur
C. price promotions' inability to attarct new customers
D. price promotions' recognizable effect on sales
E. th elegitimate uses to which management can put price promotions
Thanks a lot!!!!!!!
the passage suggests that evidence for price promotions' "effect on the bottom line" is provided by
A. the lack of lingering aftereffcets form price promotions
B. the frequency with which price promotions occur
C. price promotions' inability to attarct new customers
D. price promotions' recognizable effect on sales
E. th elegitimate uses to which management can put price promotions
Thanks a lot!!!!!!!
