What are the different types of promotional pricing?
What will be an ideal response?
Companies can use any of the following pricing techniques to stimulate early purchase:
• Loss-leader pricing - Supermarkets and department stores often drop the price on well-known
brands to stimulate additional store traffic. This pays if the revenue on the additional sales compensates for the lower margins on the loss-leader items.
• Special event pricing - Sellers can establish special prices in certain seasons to draw in more
customers.
• Special customer pricing - Sellers can offer special prices exclusively to certain customers.
• Cash rebates - Auto companies and other consumer-goods companies offer cash rebates to
encourage purchase of the manufacturers' products within a specified time period. Rebates
can help clear inventories without cutting the stated list price.
• Low-interest financing - Instead of cutting its price, the company can offer customers low-interest financing.
• Longer payment terms - Sellers stretch loans over longer periods and thus lower the monthly payments. Consumers often worry less about the interest rate of a loan, and more about whether they can afford the monthly payment.
• Warranties and service contracts - Companies can promote sales by adding a free or low-cost
warranty or service contract.
• Psychological discounting - This strategy sets an artificially high price and then offers the
product at substantial savings.
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a. Increase total assets and total equity b. Increase total assets and decrease total equity c. Decrease total assets and total equity d. Not affect total assets or total equity
Which of the following is not a major benefit to direct marketing for a retailer?
a. Startup costs can be very low. b. Customers are given a convenient method of shopping. c. A very large geographic area can be inexpensively covered. d. Products can be examined prior to purchase.
What is TCP/IP's own messaging system for email?
A. File transfer protocol (FTP) B. Simple mail transfer protocol (SMTP) C. Hypertext transfer protocol (HTTP) D. Simple network management protocol (SNMP)
A key determinant of an individual's quality of life is his or her:
A. tax bill. B. financial goal. C. wealth. D. motivation. E. growth potential.