Don intends to use promotional pricing as an ongoing part of the marketing strategy for his automotive supply store. Because you are his friend - and have years of experience in retail marketing - you feel obligated to tell Don that he should rethink this plan. What point(s) do you make?
A) Overuse of promotional pricing can get customers hooked on lower-than-normal prices.
B) Promotional pricing will require Don to use popular products like motor oil as loss leaders.
C) Promotional pricing only works when implemented together with psychological pricing techniques.
D) Promotional pricing is seldom used by retailers.

Question

Quizplus · Accepted Answer

Overuse of promotional pricing can indeed lead to customers expecting lower prices as the norm, which can reduce the perceived value of products and potentially harm profitability in the long run.

Don Intends to Use Promotional Pricing as an Ongoing Part