Which of the following statements about sales promotion are correct?
(A) Use of sales promotion tools may affect the image of a product.
(B) Due to sales promotion, buyers may start feeling that a product is not appropriately priced.
(C) Refunds are commonly used by food product companies to boost their sales.
(D) Sampling is the offer of a free sample of a product to potential customers at the time of clearing off excess inventory.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B) and (C) only
(A) Use of sales promotion tools may affect the image of a product. — Correct. This is the limitation called spoils product image. Frequent offers can change how buyers see the product.
(B) Due to sales promotion, buyers may start feeling that a product is not appropriately priced. — Correct. Under the same limitation, buyers may feel the product is not of good quality or not appropriately priced.
(C) Refunds are commonly used by food product companies to boost their sales. — Correct. A refund returns a part of the price on some proof of purchase, such as empty wrappers. Food product companies commonly use it to boost sales.
(D) Sampling is the offer of a free sample of a product to potential customers at the time of clearing off excess inventory. — Incorrect. Sampling offers a free sample to potential customers at the time of launch of a new brand. Offering products at special prices to clear off excess inventory is a rebate.
NCERT (2026-27 Edition): “Limitation of Sales Promotion … (ii) Spoils Product Image: Use of sales promotion tools may affect the image of a product. The buyers may start feeling that the product is not of good quality or is not appropriately priced.” “Commonly used sales Promotion activities 1. Rebate: Offering products at special prices, to clear off excess inventory. …” “Commonly used sales Promotion activities … 3. Refunds: refunding a part of price paid by customer on some proof of purchase, say on return of empty foils or wrapper. This is commonly used by food product companies, to boost their sales.” “Commonly used sales Promotion activities … 10. Sampling: Offer of free sample of a product, say a detergent powder or tooth paste to potential customers at the time of launch of a new brand. …” |