Asked by Ramanan Srinivasagopalan on Jun 27, 2024
Verified
The advantage of offering a price promotion during periods of low demand to shift some of the demand into a slow period is
A) a demand pattern that is less expensive to supply.
B) very high inventory costs because inventory needs to be carried from period to period.
C) in the fact that a firm could get by with a smaller,more expensive factory.
D) much of the expensive capacity would go unused during most months when demand was lower.
Price Promotion
A marketing strategy that temporarily reduces the price of a product or service to stimulate consumer purchasing.
Low Demand
A situation where the desire and need for certain products or services are beneath expectations, often leading to surplus inventory and reduced sales.
Slow Period
Times of low activity or demand in a business or industry, often marked by reduced sales or production.
- Recognize the role of pricing and promotion in shaping demand.
Verified Answer
Learning Objectives
- Recognize the role of pricing and promotion in shaping demand.
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