Why do grocery stores offer ―buy one, get one half off‖ specials? I. It's a way to offer an incentive to consumers (who might not ordinarily buy two units of the same item) to buy the extra item. II. They are thinking at the margin, and they stand to make additional profit even if they sell the second unit at a lower price than the first unit. III. Government regulations require them to hold such promotions from time to time.

Question

Quizplus · Accepted Answer

Option I is correct because offering incentives is a common marketing strategy to encourage sales. Option II is correct because the store can still make a profit even if they sell the second unit at a lower price. Option III is incorrect because there are no known government regulations requiring grocery stores to hold such promotions.

Why Do Grocery Stores Offer ―Buy One, Get One Half