Discounting a product when the product does not sell at the original price is referred to as __________.
A) inverse markup
B) markdown
C) price sensitivity
D) concession pricing
E) rebate

Question

Quizplus · Accepted Answer

Markdown is the process of offering a discount on a product that is not selling at the original price. This strategy is commonly used to improve sales and clear slow-moving inventory. Inverse markup refers to the process of setting prices based on a desired profit margin. Price sensitivity is the degree to which consumers respond to changes in price. Concession pricing refers to the practice of negotiating a lower price with a customer. Rebates are a form of discount where purchasers receive money back after the sale is made.

Discounting a Product When the Product Does Not Sell at the Original