Discounting a product when the product does not sell at the original price is referred to as a(n)__________.
A)inverse markup
B)markdown
C)price sensitivity
D)concession pricing
E)rebate

Question

Quizplus · Accepted Answer

Markdown refers to the practice of discounting a product when it does not sell at the original price. In this way, businesses hope to move the product off the shelves and make room for new inventory. In contrast, inverse markup refers to the percentage reduction of the markup in the product based on its selling price, while price sensitivity refers to how responsive customers are to changes in price. Concession pricing refers to offering discounts or special pricing to certain customers, while rebates involve offering a discount after the purchase has been made. Therefore, B is the best choice as it directly refers to the practice of discounting a product that is not selling well.

Discounting a Product When the Product Does Not Sell at the Original