BUS-2600 Chapter Notes - Chapter 16: Bed Bath & Beyond, Sales Promotion, Social Proof
4 Feb 2020
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Sales promotion: typically a short-term incentive to encourage purchase/trial of a product or service. Samples: discounts, coupons, premiums, demonstrations, point of purchase displays, contests/sweepstakes, very broad, so have a variety of objectives, objectives: Stimulate inquiries: generate product trial, build traffic. Sales promotion vs. advertising: advertising gives a reason to buy; much more long-term in nature, affects our attitudes. Sales promotions provide incentives to buy right now; short-term: affects our behavior, cheaper, cost-effective, more immediate, easier to quantify (easier to access results. Can limited quantity promotions cause aggression: ex. Black friday death count: violent behavior not the result of social proof. Scarcity promotions make us feel very competitive, and those feelings of competition increase aggressiveness and aggressive behavior. Sales promotion dilemma: most companies end up offering promotions because if their competitors do and they don"t, they lose out, however, it would actually be advantageous for both to cut back on promotions, prisoner"s dilemma for marketing.
