Which question best judges the effectiveness of a price-reduction promotion?

• A. Are sales after the promotion ended higher than before the promotion began?
• B. The promotion may not build consumer loyalty to the product when the promotion is over
• C. May damage the image of the product in the mind of the consumer
• D. None of the above

Answer: (A)

The main idea is to check whether a price-reduction promotion produces a lasting impact on demand, not just a temporary bump. The best way to test this is to compare sales after the promotion ends with sales before the promotion began. If post-promo sales stay higher than pre-promo levels, it shows the promotion created ongoing demand or captured new customers, indicating true effectiveness. If the lift fades after the promotion, the impact was likely short-lived or cannibalized regular-price sales.

The other ideas describe potential downsides or vaguely dismissed outcomes, but they don’t directly measure whether the promotion achieved lasting value.