Given below are two statements:
Assertion (A): Sales promotion tools can be very effective at the time of introduction of a new product in the market.
Reason (R): Sales promotion induces people to break away from their regular buying behaviour and try a new product.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both (A) and (R) are true and (R) is the correct explanation of (A).
Assertion (A): Sales promotion tools can be very effective at the time of introduction of a new product in the market. — True. Sales promotion tools are very effective when a new product is introduced in the market.
Reason (R): Sales promotion induces people to break away from their regular buying behaviour and try a new product. — True. Sales promotion induces people to break away from their regular buying behaviour and try the new product.
Why R explains A?
A new product has no regular buyers yet. People usually keep buying the brands they are used to. Sales promotion offers an incentive, such as a free sample or a discount, so people leave their usual brand and try the new one. Because these tools get people to try a new product, they work very well at its launch.
NCERT (2026-27 Edition): “Sales Promotion Sales promotion refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase of a product or service. These include all promotional efforts other than advertising, personal selling and publicity, used by a company to boost its sales. Sales promotion activities include offering cash discounts, sales contests, free gift offers, and free sample distribution. Sales promotion is usually undertaken to supplement other promotional efforts such as advertising and personal selling. …” “Merits of Sales Promotion (i) Attention Value: Sales promotion activities attract attention of the people because of the use of incentives. |