Question

Fall is​ approaching, and Angelina wants to sell the remaining summer items that remain in stock so that she can reinvest the cash generated from those sales in fresh fall merchandise. She plans to offer a discount that declines over time​ (for example, 30 percent off on day​ 1, 20 percent off on day​ 2, and 10 percent off on day​ 3). What type of discount is she planning to​ use?

Answer 1

Angelina plans to use steadily decreasing discount.

Step-by-step explanation:

Steadily decreasing discount refers to the strategy in which a retailer slowly or steadily reduces his/her discounts on a commodity rather than just moving the commodity back to its original price immediately after the sale period ends. This is an effective strategy because it makes the consumers know that the prices are likely to increase in the future and this will prompt them to make purchases today.

Therefore, in the scenario given above, Angelina hopes to make customers purchase her merchandise today by using the steadily decreasing discount strategy.