Pancho owns a small grocery store. Even though Pancho's costs do not vary much from month to month, he puts most of his merchandise on sale a few times a year. He rotates the items which are on sale each month. He is using the strategy of _____ to create _____ for customers who _____.
A)shopping around; group pricing; have inelastic demand
B)rebates; hurdles; have high reservation prices
C)group pricing; inelastic demand; have low reservation prices
D)price fluctuation; hurdles; are price sensitive

Question

Quizplus · Accepted Answer

Pancho's strategy of putting most of his merchandise on sale a few times a year and rotating the items which are on sale each month is an example of price fluctuation. This strategy is aimed at creating value for customers who are price sensitive and may be more likely to purchase when they perceive that they are getting a good deal. The term "hurdles" in option B is not relevant to this scenario, and options A and C do not accurately describe Pancho's strategy or the customer segment he is targeting.

Pancho Owns a Small Grocery Store