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Question: Discount pricing seeks to get consumers in the door by offering products at a "marked down" rate. This will in turn: reduce inventory, increase revenue, and potentially guide consumers to purchase more profitable products while they are in-store, for the short term. Cost-based pricing is when a business prices products based on the costs and resources that went into the product. It is as simple as adding a wanted profit to the cost of the product and beginning to sell. As for prestige pricing, this strategy is based on the idea that "high prices are equivalent to high quality." This strategy guides consumers into thinking they are purchasing a high quality product, solely because the price is higher. The even-odd pricing strategy uses psychology to influence consumers. Selling in whole numbers such as $10 even, influences the mind to think of higher quality. And odd numbers such as $9.95, influence consumers into thinking the product is marked down, or cheaper. Finally, geographic pricing considers the location of where products are being purchased. This is often an approach taken by businesses overseas, or international businesses, due to the fact that they would not be able to compete if their prices were consistent throughout.
Review and response the discount pricing.
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
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