What could be the potential downside of continually offering discounts as a type of promotional strategy?
A)It could potentially devalue the brand and its relationship with its customers.
B)It could cause the firm to have to repackage its product.
C)It could lower a firm's brand recognition.
D)It could have the effect of overpricing the product.
E)It could pave the way for more competition to enter the marketplacE.

Question

Quizplus · Accepted Answer

Continually offering discounts could lead customers to view the brand as one that always has sales, which can devalue the brand's perceived worth in the eyes of the consumer. This could ultimately harm the brand's relationship with its customers and could result in a loss of brand loyalty.

What Could Be the Potential Downside of Continually Offering Discounts