Name and describe the types of rewards consumers receive when ...

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Name and describe the types of rewards consumers receive when using sales promotions.

Question 2

Primary demand is defined as demand for a specific company's brand.
 a. True
  b. False
 Indicate whether the statement is true or false

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Answer to Question 1

All promotion techniques provide consumers with rewards that encourage certain forms of behavior desired by brand managers. These rewards, or benefits, are both utilitarian and hedonic. Utilitarian, or functional, benefits include: (1) obtaining monetary savings, (2) reducing search and decision costs, and (3) obtaining improved product quality made possible by a price reduction that allows consumers to buy superior brands they might not otherwise purchase. Consumers also obtain hedonic benefits, such as: (1) accomplishing a sense of being a wise shopper when taking advantage of sales promotions, (2) achieving a need for stimulation and variety, (3) obtaining entertainment value, (4) being viewed as tech-savvy, and (5) socializing with others on a deal with a group coupon. Consumer promotions also perform an information function by influencing consumer beliefs about a brand. Finally, the rewards consumers receive sometimes are immediate, while at other times they are delayed.

Answer to Question 2

False

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Excellent

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TYSM