If a business decides to reduce its prices once in a while on an unsystematic basis, it is using
A) price reduction planning.
B) random discounting.
C) bait pricing.
D) periodic discounting.
E) penetration pricing.

Question

Quizplus · Accepted Answer

Random discounting is when a business reduces its prices on an unsystematic or unpredictable basis in order to spur sales or attract customers. This is different from periodic discounting, which follows a regular schedule, and bait pricing, which involves advertising a highly discounted item to draw customers in but then encouraging them to purchase a more expensive alternative. Penetration pricing, on the other hand, involves setting low prices initially to gain market share. The term "price reduction planning" is not commonly used in marketing or pricing strategies.

If a Business Decides to Reduce Its Prices Once in a While