You are the marketing manager for a multi-state auto dealership in the Southeast United States. It is that time of year when your fleet of autos goes through a major model year change. You are putting the final touches on your pricing strategy to facilitate this change in your inventory of autos.Which of the following pricing strategies will you use to facilitate this model year change?
A)Negotiated pricing
B)Secondary-market pricing
C)Differential pricing
D)Random discounting
E)Periodic discounting

Question

You are the marketing manager for a multi-state auto dealership in the Southeast United States. It is that time of year when your fleet of autos goes through a major model year change. You are putting the final touches on your pricing strategy to facilitate this change in your inventory of autos.Which of the following pricing strategies will you use to facilitate this model year change? ​
A)Negotiated pricing
B)Secondary-market pricing
C)Differential pricing
D)Random discounting
E)Periodic discounting

Quizplus · Accepted Answer

Periodic discounting is the best pricing strategy to facilitate model year change as it allows for a gradual reduction in prices over a period of time to clear out the old inventory and make room for the new models. This strategy helps to attract price-sensitive customers who are waiting for good deals and incentivizes them to buy from your dealership. The other pricing strategies mentioned are not as effective for facilitating a model year change. Negotiated pricing requires customers to haggle for prices, which can be time-consuming and may not result in quick inventory turnover. Secondary-market pricing is not applicable as the dealership is not selling used cars. Differential pricing may create resentment among customers who feel they are being charged differently. Random discounting does not provide the customers with any certainty or predictability in pricing.

You Are the Marketing Manager for a Multi-State Auto Dealership