The holiday shopping season is a busy one for retailers and shoppers alike as retailers strive to offer a selection of products that shoppers will want to purchase as gifts for friends and family members. Some consumers might shop all throughout the year to gather the various gifts for friends and family members while the majority of shoppers will purchase items in a narrow window the three to four weeks before Christmas. Retailers face stiff competition for the consumer's gift purchasing business and may realize 40% to 50% of their annual sales during the holiday shopping frenzy. In order to attract more customers to their retail store, chains such as Target and Walmart advertise significant price reductions on desired items such as laptop computers, television sets, and gaming systems. More and more shoppers are anticipating these heavy discounts for the few days after Thanksgiving and especially on Black Friday and Cyber Monday and concentrate their holiday shopping on these days to maximize the discounts they could get when purchasing gifts. The holiday sales known as Black Friday and Cyber Monday are an example of the ______ strategy.

Question

Quizplus · Accepted Answer

The strategy described is periodic discounting, where retailers offer significant price reductions during specific periods of time, such as the holiday shopping season and Black Friday/Cyber Monday. Captive pricing would involve charging a higher price for products that require accompanying purchases, random discounting is not a recognized strategy, and price lining involves offering different price points for products based on their quality or features.

The Holiday Shopping Season Is a Busy One for Retailers