The statement, because of their economies of size, large food processors typically spend a smaller percentage of sales on promotion than do small processors, is false.
The large food processors typically spend a huge amount on the sales promotions for better sales with a good amount of profit. Thus, they do so because sales promotions boosts sales of a product by creating demand in the market.
This creates both the consumer demand as well as trade demand. It also improves the performance of middlemen and acts as a supplement to advertising and personal selling.
Hence, option B is correct.
To learn more about sales promotions here:
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