Answer to Question 1
Sales promotion refers to short-term inducements that provide extra value and incentives to sales personnel, intermediaries, and consumers. The Internet, and social media in particular, lend themselves well to facilitating sales promotion activities, which include offering coupons, discounts, rebates, product sampling, contests, and premiums. Firms may offer any or some combination of these to entice buyers to act immediately, such as by visiting a Web site, registering online, or making a purchase. Offering coupons online significantly lowers the costs of development, distribution, and database creation. Unlike traditional coupons, the firm incurs no printing costs. Many consumers prefer to obtain coupons online because of the time savings in searching for and organizing them. Some sites allow users to sample digital offerings prior to purchase. This approach is common in international sales of music, software, and many types of online services. Many firms employ social media to engage users in contests, sweepstakes, and games. The goal is typically to create interest, generate excitement, and entice users to visit a retail Web site.
Answer to Question 2
A