What is a potential downside of sales promotions?

• A. They can cheapen a company's image and lead to a 'no bonus, no buy' attitude.
• B. They always increase brand equity.
• C. They are not targeted to specific customer segments.
• D. They require no coordination with other marketing activities.

Answer: (A)

Sales promotions carry the risk of eroding brand value because they can cheapen a company's image and condition customers to expect discounts, creating a “no bonus, no buy” mindset. When people come to expect low prices, they may delay purchases until a promotion, which hurts full-price sales and can undermine long-term loyalty. This undermines brand equity, especially for brands that rely on quality, uniqueness, or premium positioning.

While promotions can sometimes support short-term volume, they do not automatically boost brand equity, and they can be misused if not targeted or coordinated with other marketing efforts. The other options describe aspects that aren’t as universally true or central to a common downside: promotions can be targeted if planned, they often require coordination, and they don’t inherently always increase brand equity.