A Local Appliance Store Is Advertising the Sale of a 27-Inch

question 76

Essay

A local appliance store is advertising the sale of a 27-inch color TV for only $199. The ad states that this price will apply only to TVs that are in stock and no rain checks will be given. Fifteen minutes after the store opens on the day of the sale of the TV, a customer is told by a sales clerk that all of the TVs selling for $199 have been sold. However, the sales clerk is very happy to show the customer a similar TV for only $399. What pricing strategy is the store implementing and why?

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Definitions:

Five Ps

The components of the marketing mix, including Product, Price, Promotion, Place, and People, used to strategically position and sell a product or service.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Marketing Mix

The combination of factors controlled by a company to influence consumers to purchase its products, traditionally identified as the 4Ps: Product, Price, Place, and Promotion.

Product Element

Components or features that make up a product, including its design, functionality, brand, and packaging, among others.