Final answer:
T.J. Maxx's strategy of reducing prices for slightly damaged goods is known as Markdown pricing. It's part of retail strategies aimed at selling off inventory with minor defects, encouraging sales, or clearing out stock, and can lead to consumer surplus for shoppers finding good deals.
Step-by-step explanation:
The practice of T.J. Maxx offering price reductions for slightly damaged merchandise is referred to as C) Markdown pricing. Markdown pricing is a common retail strategy where goods are sold at a reduced price due to minor defects, clearance, or to encourage sales of slow-moving inventory. While a bargain strategy could imply various forms of discounts and sales, discounting policy usually refers to an overarching approach to how discounts are handled in a business, and clearance sale often indicates that merchandise is being sold to clear out inventory, often for items that are not damaged but are being discontinued or are seasonal.
An economist might refer to a shopper getting a "good deal" on a product through markdown pricing as achieving consumer surplus, which occurs when the price paid is less than what the buyer would have been willing to pay. In addition to offering markdowns, a company, particularly one that operates online or through mail-order catalogs, might use a money-back guarantee to promote sales by ensuring customer confidence in product quality, despite the inability to inspect products before purchase.