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Describe how a promotion discount can communicate information about a product.

Describe how a promotion discount can communicate information about a product.

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Answer #1

Promotional discounts can be very helpful in conveying the information of product to buyer/consumer. If Promotional discount is minimum then seller of a product is sure about the consumer class he is targeting whereas when Promotion discount is higher in such cases seller is in attempt to increase his consumer base by which consumer with lower willingness to pay would purchase this product in promotional activity and as producer is certain about the quality of this product believes that in future consumer is going to use this product as addiction of utilizing benefits from this product plays an important role.

Hence Promotional discount can provide useful information about the strategies earmarked by producer at the begining

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