Promotional Pricing Can Have All of the Following Adverse Effects

question 130

Multiple Choice

Promotional pricing can have all of the following adverse effects EXCEPT ________.

• A) creating deal-prone customers
• B) eroding the brand's value in the eyes of customers
• C) giving pricing secrets away to competitors
• D) becoming addictive to both the customer and business
• E) delaying the company's focus on long-term strategies

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Definitions:

Nominal Rate

The stated interest rate of a financial instrument, not accounting for inflation or compounding effects.

Effective Rate

The actual interest rate on a loan or investment, taking into account the effects of compounding and other factors.

Face Rate

The interest rate stated on the face of a bond or a loan document, which determines the interest payments that the issuer will make.

Contract Rate

This refers to the interest rate stated in a contract that determines the amount of interest owed on a loan or financial agreement.