Compare and contrast price-off promotions and bonus ...

[asan beg]

Compare and contrast price-off promotions and bonus packs.

Question 2

Consumers often remember little else except the brand being advertised.
 a. True
  b. False
 Indicate whether the statement is true or false

[annierak]

Answer to Question 1

Price-off promotions (also called cents-off or price packs) entail a reduction in a brand's regular price. A price-off is clearly labeled as such on the package. Marketers' objectives for using this form of promotion can include: (1) rewarding present brand users, (2) getting consumers to purchase larger quantities than they normally would, (3) establishing a repeat purchase pattern after initial trial, (4) ensuring that promotional dollars do, in fact, reach consumers, (5) obtaining off-shelf display space when such allowances are offered to retailers, and (6) providing the sales force with an incentive to obtain retailer support. Price-offs primarily represent a form of immediate reward for consumers. There are several FTC regulations regarding this type of promotion.

Bonus packs are extra quantities of a product that a company gives to consumers at the regular price. This form of promotion provides consumers with an immediate reward and, for manufacturers, primarily serves a repeat purchase objective. Bonus packs are sometimes used as an alternative to price-off deals when the latter are either overused or resisted by the trade.

Answer to Question 2

True