Don intends to use promotional pricing as an ongoing part of the marketing strategy for his automotive supply store.Because you are his friend -- and have years of experience in retail marketing -- you feel obligated to tell Don that he should rethink this plan.What point(s)do you make?
A)Overuse of promotional pricing can get customers hooked on lower-than-normal prices.
B)Promotional pricing is intended to be a temporary part of a firm's marketing strategy, not an ongoing element.
C)Promotional pricing will require Don to use popular products like motor oil as loss leaders.
D)Promotional pricing only works when implemented together with psychological pricing techniques.
E)Promotional pricing is seldom used by retailers.

Question

​Don intends to use promotional pricing as an ongoing part of the marketing strategy for his automotive supply store.Because you are his friend -- and have years of experience in retail marketing -- you feel obligated to tell Don that he should rethink this plan.What point(s)do you make?
A)​Overuse of promotional pricing can get customers hooked on lower-than-normal prices.
B)​Promotional pricing is intended to be a temporary part of a firm's marketing strategy, not an ongoing element.
C)​Promotional pricing will require Don to use popular products like motor oil as loss leaders.
D)​Promotional pricing only works when implemented together with psychological pricing techniques.
E)​Promotional pricing is seldom used by retailers.

Quizplus · Accepted Answer

Overuse of promotional pricing can lead customers to expect consistently low prices, which can harm profitability. Additionally, promotional pricing is typically meant to be a temporary strategy to boost sales or clear inventory, not a permanent approach.

​Don Intends to Use Promotional Pricing as an Ongoing Part

Don Intends to Use Promotional Pricing as an Ongoing Part