DECA Hospitality and Tourism Cluster Practice Exam

What type of marketing strategy is exemplified by offering a discount at a restaurant during a grand opening?

1. Sales promotion

2. Public relations

3. Personal selling

4. Visual merchandising

The correct answer is: Sales promotion

Offering a discount at a restaurant during a grand opening is a clear example of a sales promotion strategy. Sales promotions are short-term incentives designed to encourage the purchase or trial of a product or service. By providing a discount, the restaurant aims to attract customers and generate interest in its offerings during the initial launch phase. This approach not only incentivizes potential customers to visit but also helps to create buzz and increase foot traffic, which can be crucial for a new establishment seeking to establish itself in the market. While public relations involves gaining favorable exposure for a business through media coverage and community engagement, it doesn't directly incentivize immediate purchases like a discount does. Personal selling focuses on direct interaction between sales personnel and customers to persuade them to buy, which is not the primary strategy in the context of a grand opening discount. Visual merchandising involves the presentation and arrangement of products within a space to enhance customer interaction and sales, but again, it does not directly relate to the strategy of offering discounts as an immediate incentive for customers to visit.