Question

3A.4 A radio station has a promotion in which it announces that a local petrol station will sell petrol at $1.10 cents per litre beginning in 30 minutes. Jack hops in his car and drives to the station to fill up his half-empty tank. He pays only $22 for 20 litres instead of the going price of $26. Did Jack save $4.00? Is the radio station doing its listeners a favour by offering this promotion? Briefly explain.

Answer 1

It can be mentioned that this is a promotional offer to the customer where he feels that due to the promotional offer he actually saved $4 and that is due to the promotional offer portrayed by the radio channel. This is one of the promotion tool which can be considered as advertising when clubbed with sales promotion the sales level increase and the radio station is getting benefited from portraying the ad as a result of which it would increase the revenue and also it would benefit the customers by mentioning about the deal so that they can be further benefited from it