Anne is a manager at a store that sells casual clothing and accessories for both men and women. She notices that the jeans priced at $120 aren't selling very well. She wants to increase sales of these jeans before the next season. The approach Anne should take to achieve this is to _____.
A) keep the prices the same but move the jeans to another section of the store
B) lower the price of the jeans so that demand will increase
C) raise the price of the jeans to make them seem more exclusive
D) put even higher priced jeans next to the $120 jeans

Question

Quizplus · Accepted Answer

Lowering the price of the jeans will increase demand as customers may be more willing to make a purchase if the price is lower. This strategy is known as price adjustment. Moving the jeans to another section of the store, raising the price, or putting higher priced jeans next to them may not necessarily increase sales.

Anne Is a Manager at a Store That Sells Casual