What is commonly used by firms to boost sales effectively?

Incentives are commonly used by firms to boost sales because they directly motivate customers to make a purchase. This can take many forms, such as cash rewards, loyalty programs, or special promotions that encourage repeat business. By providing incentives, companies can create a sense of urgency or added value that prompts consumers to act quickly, enhancing customer engagement and driving sales volume.

While discounts can also encourage sales, they might not always convey the same long-term customer loyalty benefits as incentives can. Similarly, advertising helps increase visibility and awareness, but without a direct call to action or reward, it may not always translate to immediate sales. Product placements can enhance brand recognition but often lack the specific, direct encouragement that incentives provide to potential customers. Thus, incentives stand out as an effective strategy for firms aiming to boost sales.