One potential disadvantage of using promotional tools that focus on lowering prices is that

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BlackTom AI · Accepted Answer

Exploring the question about a drawback of using promotional tools that lower prices, we consider what each option implies.
Option 1: 'customers may simply shift their purchases from the future to now.' This is a classic disadvantage of price promotions: buyers delay purchases until a promotion, pulling demand forward and potentially reducing revenue in the promotional period or creating a lull afterward.
Option 2: 'competitors will ramp up their own advertising in response.' While a price promotion can trigger competitive reactions, this is not inherently a disadvantage of price reduction tools themselves; it is a possible market response, not a direct drawback to the promoter.
Option 3: 'media will raise their prices for product placements.' This outcome is not a necessary or typical consequence of lowering prices; media price changes are influenced by many factors and are not a guaranteed downside of discount promotions, making this option less relevant.
Option 4: 'customers may try other brands instead.' In price promotion contexts, some customers might switch brands, but price cuts usually aim to retain or attract customers; this option describes a potential risk but is not the primary or most direct disadvantage of discount promotions.
Option 5: 'the company’s loyalty program will suffer.' A price-focused promotion does not inherently harm loyalty programs; in fact, promotions can sometimes enhance loyalty if paired with value, so this is not the core drawback of discount-based tools.

In sum, the most direct and widely recognized drawback among these choices is the forward-shifting of demand—customers bringing purchases forward to take advantage of temporary lower prices, which can depress future sales and complicate forecasting. The other options describe possible market dynamics or outcomes, but they do not capture the central issue that price promotions create a timing shift in demand rather than true demand growth.

One potential disadvantage of using promotional tools that focus on lowering prices is that

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