Which factor contributed to the growth of trade promotions according to market research?

Market saturation is a significant factor that has contributed to the growth of trade promotions. In markets where many products and brands compete for the same consumer base, companies often find it necessary to employ promotions to stand out. Trade promotions offer retailers incentives, such as discounts or allowances, to prioritize specific products, ultimately driving sales and helping brands gain a competitive edge.

As competition intensifies due to market saturation, manufacturers and retailers leverage trade promotions to attract customers who may be overwhelmed by choices and unsure of which brand to select. This tactical approach not only helps in increasing product visibility but also encourages bulk purchasing by retailers, further enhancing sales for their stores. In a saturated market, leveraging promotions becomes essential for maintaining market share and ensuring continued growth.

The other options touch on relevant themes, but they do not capture this particular dynamic in the same way. While increased brand loyalty can stabilize sales, it's not a driver for trade promotions in a crowded market. Rising costs might influence pricing strategies, but they don't inherently lead to the use of promotions. Online shopping trends can reshape how promotions are implemented but are not a direct cause for trade promotions' growth in the context of market saturation.