Question

A store advertises new TVs for $100 a month for six $600 in order to

A. encourage customers to buy more than one item
B. make a larger price tag look more manageable
C. make signage more attractive to shoppers
D. significantly reduce the amount of tax taken

Answer 1

B. make a larger price tag look more manageable

Answer 2

B. make a larger price tag look more manageable

Step-by-step explanation:

A price tag of $600 may see a too high price for many customers. To eliminate the perception of a huge price/expensive TV, the store opts to spread the TV cost over six months. The customer will end up paying $600 for the TV( 6 x $100).

The $600 price tag may discourage some customers, which translates to a loss of sales. $100 for six months is attractive, pocket friendly and may generate many sales to the store.