Which pricing approach offers customers a reduced price to encourage them to buy?

• A. Direct channel
• B. Discount pricing
• C. Product mix
• D. Advertising

Answer: (B)

Discount pricing is a pricing strategy that lowers the price to spur purchases. By offering a reduced price, a business makes the product more affordable and attractive to customers who might be on the fence or seeking value, helping to increase sales, attract new customers, and move inventory. It’s commonly used in promotions, seasonal sales, or coupon campaigns. The other terms describe different business levers: a direct channel is about how the product is sold or distributed, not the price; the product mix concerns which products to offer and how they complement each other; and advertising is a promotion tool used to communicate and persuade customers, though it can accompany discounts, it is not the pricing approach itself.