Timing is an important element of markdowns. Those retailers who take a markdown as soon as sales fall off most likely are doing so to
A) placate dissatisfied customers.
B) enhance customer perceptions of product quality.
C) free up valuable selling space and cash.
D) create an image as a cutting-edge retailer.
E) react to the entry of a new competitor.

Question

Quizplus · Accepted Answer

Retailers take markdowns to quickly sell off inventory that is not moving, thereby freeing up valuable selling space and cash for new, potentially more profitable merchandise.

Timing Is an Important Element of Markdowns