What pricing strategy sets prices below normal levels or below cost to clean out inventory or attract traffic during special periods?
ADynamic Pricing
BPromotional Pricing
CGeographic Pricing
DTarget Return Pricing
Explanation
* Promotional Pricing uses temporary price reductions (cash rebates, special-event pricing, low-interest financing) to stimulate short-term sales.
* Frequent promotional pricing can create deal-prone consumers and erode brand reputation.
* It is distinct from value pricing or everyday low pricing (EDLP).
Exam Relevance
- Topic: Pricing Strategy
- Subtopic: Price Adjustments

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