Define the following forms of promotional pricing and identify ...

[vHAUNG6011]

Define the following forms of promotional pricing and identify consideration management should take into account if choose to employ.
 
  What will be an ideal response?

Question 2

_________________ can provide a direct and personal message to a specific demographic.
 
  a. Direct mail
  b. Outdoor advertising
  c. An Internet webpage
  d. Television

[TheDev123]

Answer to Question 1

Discounting  a percentage is taken off the normal retail price. Management must take steps to ensure discounts are not too deep to avoid hurting profits.
 BOGO  when customer buys one item at full price, they get another, equal or lower priced item for free. Should be used primarily during slow business hours.
 Bundling  a variation of Prix Fixe menus. Allows the customer to get a better value by adding items at as reduced price. Actual cost of combination should be determined to protect profits.
 Coupons  customer must present coupon to get discount. Can be used with any of the above. Should consider how availability of coupon will impact frequency of guest visit to operation.

Answer to Question 2

B

[vHAUNG6011]

Thanks for the timely response, appreciate it

[dreamfighter72]

Great answer, keep it coming