​Don Intends to Use Promotional Pricing as an Ongoing Part

question 111

Multiple Choice

​Don intends to use promotional pricing as an ongoing part of the marketing strategy for his automotive supply store.Because you are his friend -- and have years of experience in retail marketing -- you feel obligated to tell Don that he should rethink this plan.What point(s) do you make?

• A)​Overuse of promotional pricing can get customers hooked on lower-than-normal prices.
• B)​Promotional pricing is intended to be a temporary part of a firm's marketing strategy, not an ongoing element.
• C)​Promotional pricing will require Don to use popular products like motor oil as loss leaders.
• D)​Promotional pricing only works when implemented together with psychological pricing techniques.
• E)​Promotional pricing is seldom used by retailers.

---

Definitions:

Labor Surplus

A situation where the supply of labor exceeds the demand for it, typically leading to higher unemployment rates.

Downsizing

The act of reducing the number of employees within a company, typically to cut costs or improve efficiency.

Natural Attrition

The reduction in workforce size through normal means, such as retirement or resignation, without the need for layoffs.

Labor Shortage

A situation where there are not enough qualified candidates to fill the available job positions within a market or industry.