Question

Ashton wants to generate interest in the new branch of his hobby stores that is opening next week. He plans to offer temporary price cuts and issue coupons. This practice is referred to as a. price discrimination. b. price promotion. c. price instability. d. price sensitivity.

Answer 1

Answer:

B. Price promotion

Explanation:

Ashton by trying to create awareness in his new branch, he is planning to cut price and offer coupons so as to persuade customers to purchase from him. The practice is known as price promotion.

Price promotion is the combination of two words "price" and "promotion".

Price refers to the amount of money paid by consumers to purchase goods and services.

Promotion on the other hand refers to activities that persuade the consumers to buy a product and communicate the product’s features and benefits.

Combining the two definitions, pro promotion refers to a discount in price which will encourage consumers to purchase a product.