Reductions in the price of an item that are taken in order to stimulate sales are termed:
A) maintained price cuts.
B) promotional price cuts.
C) shortages.
D) markdowns.
E) initial price cuts.

Question

Quizplus · Accepted Answer

Markdowns refer to reductions in the price of an item that are taken in order to stimulate sales. Option A, maintained price cuts, refers to the consistent pricing strategy of a product/service. Option B, promotional price cuts, refers to the temporary price reductions for a product/service during promotions. Option C, shortages, refer to the unavailability of a product due to insufficient supply. Option E, initial price cuts, refer to the initial reduction in price when a new product is launched.

Reductions in the Price of an Item That Are Taken