Which factor would NOT contribute to driving base sales?

Prepare for the Category Management Certification Exam with comprehensive study materials. Use flashcards, multiple-choice questions, and detailed explanations to boost your readiness.

Driving base sales refers to the consistent and ongoing sales that a business generates from its products or services over time without relying heavily on promotional activities. Among the options, price reduction is typically a short-term strategy aimed at increasing sales volume but does not contribute to sustainable or base sales in the long run.

When prices are reduced, sales may temporarily spike; however, this approach can erode profit margins and lead customers to expect lower prices as the norm, which might harm the perceived value of the product and its sales potential once the discounts are removed.

In contrast, regular pricing establishes a consistent expectation, customer loyalty programs encourage repeat business, and product quality assures customers of a reliable purchase, all of which foster long-term customer relationships and stable sales growth. Thus, while price reductions can drive short-term sales increases, they do not adequately contribute to the foundation of base sales that is built on customer retention and trust in the product.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy