When is discounting used to set prices?
A) When attempting to stimulate sales
B) When odd-even psychological pricing is not successful
C) When conducting a break-even analysis
D) When a price-skimming strategy is used
E) When profit margins are too low

Question

Quizplus · Accepted Answer

Discounting is typically used to stimulate sales by offering customers a lower price than usual. This can be useful in encouraging customers to make a purchase, especially if they feel like they are getting a good deal. Discounting can also be used to clear out inventory or to promote certain products or services.

When Is Discounting Used to Set Prices