Why do French companies rarely offer an extra product for free as ...

[fnuegbu]

Why do French companies rarely offer an extra product for free as a promotion?
 a. French consumers are suspicious of free items.
  b. Legal reasons make it difficult to offer high quality free items.
  c. European Union policies discourage the use of free promotions.
  d. Because demand exceeds supply for most consumer nondurables, promotions are unnecessary.

Question 2

In the context of consideration sets, the attraction effect occurs because adding superior brands to a set increases the attractiveness of a dominant brand, making decisions easier for consumers.
 
 Indicate whether the statement is true or false

[jamesnevil303]

Answer to Question 1

B
Demand does not exceed supply for most consumer nondurables in developed markets. Individual countries in the European Union (like France) may have laws and regulations against certain promotions, but the European Union does not have a policy discouraging the use of free promotions. French companies rarely offer an extra product for free because the amount the company is allowed to give away is limited to seven percent of the total value.

Answer to Question 2

False