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Extensive research has shown that the effectsof short-term price promotions on sales are themselves short-term. Companies’ hopes that promotions might have apositive aftereffect have not been borne out for reasons that researchers havebeen able to identify. A price promotionentices only a brand’s long-term or “loyal” customers; people seldom buy anunfamiliar brand merely because the price is reduced. They simply avoid paying more than they haveto when one of their customary brands is temporarily available at a reducedprice. A price promotion does notincrease the number of long-term customers of a brand, as it attracts virtuallyno new customers in the first place. Nor do price promotions have lingeringaftereffects for a brand, even negative ones such as damage to a brand’s reputationor erosion of customer loyalty, as is often feared. So why do companies spend so much onprice promotions? Clearly pricepromotions are generally run at a loss, otherwise there would be more ofthem. And the bigger the increase insales at promotion prices, the bigger the loss. While short-term price promotions can have legitimate uses, such as reducingexcess inventory, it is the recognizable increase in sales that is their mainattraction to management, which is therefore reluctant to abandon this strategydespite its effect on thebottom line.
Q13: The passage suggests that evidence for price promotions’ “effect on the bottom line” (line 40) is provided by A. the lack of lingering aftereffects from price promotions B. the frequency with which price promotions occur C. price promotions’ inability to attract new customers D. price promotions’ recognizable effect on sales E. the legitimate uses to which management can put price promotions
答案是B,可怎么也找不到原文哪里提promotion的frequency了?
谢谢!! |
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