What Is the Potential Byproduct of Promotional Markdowns

question 40

Multiple Choice

What is the potential byproduct of promotional markdowns?

• A) It is a way of achieving a break-even point.
• B) Promotional markdowns benefit customers because they are charged according to their willingness to pay.
• C) Retailers aim to get rid of unwanted merchandise through promotional markdowns.
• D) The increased in-store traffic can lead to the purchase of other products at regular prices.
• E) Buyers are benefitted because they are charged according to the market segment to which they belong.

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Definitions:

Poisson Distribution

A distribution quantifying the chances of a specific amount of occurrences happening within a set period or spatial region.

Probability

A measure of the likelihood that a certain event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Sales

The exchange of a commodity for money; the action of selling something.

Poisson Approximation

A statistical technique used to estimate the probability of a given number of events happening in a fixed interval of time or space, assuming these events occur with a known constant mean rate and independently of the time since the last event.