Selling products under schemes like “12 easy monthly installments, 4 Up Front and 8 To Be Paid as Post Dated Cheques”, is an example of:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Sales Promotion
Option (1) Advertising — Incorrect. Advertising is a paid, impersonal message that tells people about a product. It does not by itself make the product cheaper or easier to pay for.
Option (2) Sales Promotion — Correct. Sales promotion means short-term incentives that push people to buy now. An easy instalment scheme is one of them. The book calls it full finance @ 0%: the buyer pays a small part at once and the rest through post-dated cheques.
Option (3) Public Relations — Incorrect. Public relations builds a good image of the firm among the public. It does not offer terms of payment.
Option (4) Publicity — Incorrect. Publicity is news about a product carried by the media free of cost. The firm does not control it.
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. …” “9. Full finance @ 0%: Many marketers of consumer durables such as Electronic goods, automobiles etc offer easy financing schemes such as ‘24 easy instalments, Eight Up Front and 16 To Be Paid as Post Dated Cheques’. However, one should be careful about the file charges, which sometimes is nothing but interest recovered in advance.” |