In which of the following price adjustment strategies, a company reduces prices to reward customer…
In discount and allowance pricing, companies adjust their basic list prices downward to reward customers for specific beneficial responses, such as paying bills early (cash…
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In which of the following price adjustment strategies, a company reduces prices to reward customer responses such as volume purchases, paying early or promoting the product?
Answer and explanation
Correct answer A
In discount and allowance pricing, companies adjust their basic list prices downward to reward customers for specific beneficial responses, such as paying bills early (cash discount), buying in large quantities (quantity discount), buying off-season (seasonal discount), or participating in retailer advertising and display programmes (promotional allowances).
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UGC NET Commerce