Final answer:
The situation described is an example of price discrimination, where retailers charge higher prices on an everyday basis but run frequent promotions to lower prices temporarily on selected items.
Step-by-step explanation:
The situation described, where retailers charge higher prices on an everyday basis but run frequent promotions to lower prices temporarily on selected items, is an example of a marketing strategy called price discrimination. Price discrimination occurs when businesses charge different prices to different groups of customers for the same product or service.
This strategy allows retailers to maximize their profits by targeting customers who are willing to pay a higher price for certain products, while also appealing to price-sensitive consumers through lower promotional prices. By offering temporary discounts and promotions, retailers can create a sense of urgency and encourage customers to make a purchase.
Price discrimination is a common practice in the retail industry, as it allows retailers to cater to different customer segments and optimize their pricing strategy.