A shoe manufacturing firm frequently relies on sales promotion, it may give the impression :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → That there are no takers of its product.
Option (1) That it is able to manage its sales very well. — Incorrect. The impression is the reverse. A firm that keeps offering discounts and free gifts looks unable to manage its sales.
Option (2) That there are no takers of its product. — Correct. This limitation of sales promotion is called reflects crisis. Constant offers make buyers think the product does not sell on its own, so the firm must push it.
Option (3) That the product is of good quality. — Incorrect. Frequent promotion has the opposite effect. It spoils the product image, and buyers begin to doubt the quality.
Option (4) That the product is appropriately priced. — Incorrect. Repeated price cuts make buyers feel the product was overpriced in the first place.
NCERT (2026-27 Edition): “Limitation of Sales Promotion (i) Reflects Crisis: If a firm frequently rely on sales promotion, it may give the impression that it is unable to manage its sales or that there are no takers of its product. |