Larry's Lawn Care allows customers to use a credit card for purchases.Larry pays 4 percent of the sale to the credit card company.To promote more business,Larry decides to offer a lower price to customers paying cash-that price being 3 percent less than the standard list price.Larry is giving his customers a(n)

Question

Quizplus · Accepted Answer

Larry's offer of a lower price to customers paying cash is a discount-for-cash, which is a common pricing strategy used to encourage customers to pay by cash or check rather than credit card. A functional discount is given to customers who purchase in large quantities, a trade-in allowance is given for the trade-in of an old product, a promotional allowance is given to promote a new product, and an everyday low price is a pricing strategy that keeps prices low consistently. None of these match Larry's pricing strategy in this scenario. Therefore, the best answer is D.

Larry's Lawn Care Allows Customers to Use a Credit Card