Which pricing approach involves reducing price to clear inventory quickly?

Which pricing approach involves reducing price to clear inventory quickly?

• A. Positioning
• B. Advertising
• C. Discount pricing
• D. Direct channel

Answer: (C)

Discount pricing focuses on lowering the sale price to move inventory quickly. This approach is used when stock is piling up, seasons are ending, or cash flow needs a boost. By offering lower prices for a limited time or in larger quantities, you stimulate demand and free up space for new items, while reducing holding costs and the risk of obsolete stock. This differs from positioning, which is about how customers perceive the product in relation to competitors; advertising, which centers on promoting the product; and direct channel, which concerns how the product is distributed. So discount pricing is the strategy aimed at clearing inventory fast.

Discount pricing focuses on lowering the sale price to move inventory quickly. This approach is used when stock is piling up, seasons are ending, or cash flow needs a boost. By offering lower prices for a limited time or in larger quantities, you stimulate demand and free up space for new items, while reducing holding costs and the risk of obsolete stock. This differs from positioning, which is about how customers perceive the product in relation to competitors; advertising, which centers on promoting the product; and direct channel, which concerns how the product is distributed. So discount pricing is the strategy aimed at clearing inventory fast.