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Discount Pricing |
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Description of Discount Pricing. Explanation. |
Definition Discount Pricing. Description.
Discount Pricing is an approach to pricing that sets artificially high prices and then offers large discounts to attract customers looking for a bargain. It is a modification to the basic price. Purposes of this approach are to increase short-term sales, move out-of-date stock, reward valuable customers, and encourage distribution channel members to perform a function.
Some regular types of discounts are:
The biggest advantage of this type of pricing is that it encourages additional sales without lowering the basic price or standard price or list price.
Compare with: Marketing Mix | Promotional Pricing | Competitive Pricing | Cost-plus Pricing | Standard Cost Pricing | Marginal Cost Pricing | Penetration Pricing | Target Pricing | Price Skimming | Perceived Value Pricing | Psychological Pricing |
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End of description Discount Pricing. An explanation. |
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