Timing is an important element of markdowns.Those retailers who take a markdown as soon as sales fall off are most likely doing so to __________.
A) placate dissatisfied customers
B) enhance customer perceptions of product quality
C) create an image as a "cutting edge" retailer
D) free up valuable selling space and cash
E) react to the entry of a new competitor

Question

Quizplus · Accepted Answer

Retailers take a markdown to free up selling space and cash by selling slow-moving inventory. Timing is important because taking a markdown too soon can lead to unnecessary profit loss, while waiting too long can result in excess inventory and even greater losses.

Timing Is an Important Element of Markdowns