Question

Which of the following is not considered a buying incentive?

Answer 1

Answer: B) Display

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Explanation:

A buying incentive is anything that encourages any potential customers to become actual customers. Ideally, those people are repeat customers down the road as well (even if such buying incentives are no longer in place).

If someone sees a coupon or a rebate, then they'll be more likely to buy the item since the price is lower. A coupon is an immediate discount right on the spot, whereas a rebate is when you get a discount later on. A rebate means you have to mail in proof of purchase, and the company will send money back. These are two ways to apply a discount.

A third way to entice customers is to offer prizes. An example of this is a "buy one get one" sale (often abbreviated as BOGO). The company may lose money doing this, but they do so in the hopes of gaining new customers. Plus word of mouth tends to spread more often when such sales occur.

With everything discussed so far, this allows us to rule out choices A, C and D. They are all some kind of way to encourage potential buyers. Choice B is the answer because a display simply shows the price and any other relevant info to the product. Displays are neutral in the sense that they don't encourage a purchase and rather just convey information. When I mention this, I'm not talking about displays that advertise discounts or coupons.