Which policy focuses on keeping revenue streams viable across all sales channels during promotions?

• A. Guardrails on promotion depth/duration
• B. Communication of value
• C. Cross-elasticities with other products
• D. Ensuring alternative channels remain profitable

Answer: (D)

The main idea here is protecting revenue across all sales channels during promotions. When a promotion hits, demand can swing between channels and margins can shrink if one channel becomes the go-to discount option or if costs in another channel aren’t covered. A policy that ensures alternative channels remain profitable addresses this by coordinating promotions so no channel loses money and all revenue streams stay viable. This might involve setting minimum margins, aligning pricing across channels, or requiring cross-channel coordination to prevent cannibalization and channel conflict.

That makes it the best fit because it targets the bottom-line impact across every way customers can buy the product, not just how attractive a promotion sounds or how it might affect one product's demand. The other ideas focus on different aspects: guarding promotion depth and duration controls how aggressive promotions can be but doesn’t guarantee profitability across every channel; communicating value deals with messaging rather than profitability; and understanding cross-elasticities with other products looks at demand interactions within products rather than channel-level profitability during promotions.