E. Sweepstakes and Contests 1. A contest requires people to use certain skills to win prizes. F. Premiums 1. A premium is an item of value offered free or at a low price to customers who buy or try a particular product. Promotions featuring premiums can encourage customers to buy for the first time or reinforce the relationship over time by rewarding multiple purchases.
Trading cards are popular premiums for cementing customer relationships.
G. Price Promotions 1. A price promotion is a price reduction offered to every purchaser during a limited period. Price promotions offer a discount to everyone, encouraging customers to try a new product or to buy more of an established product. Promotions can involve lowering prices by a fixed percentage, by a fixed dollar amount, or by providing two or more items for the price of one. H. Refunds and Rebates 1.