The Use of Short-Term Incentives to Encourage the Purchase or Sale

question 63

Multiple Choice

The use of short-term incentives to encourage the purchase or sale of a product or service is called ________.

• A) direct marketing
• B) sales promotion
• C) personal selling
• D) public relations
• E) publicity

---

Definitions:

Competitive Pricing

A strategy where a company sets the price of its products based on the prices of competitor products.

Value-Based Pricing

A pricing strategy based on the perceived value of a product or service to the customer rather than on the cost of production.

Cost-Oriented Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost.

Demand-Based Pricing

A pricing strategy where the price is set based on the customer's perceived value and demand for the product or service.