Sales And Special Promotions

Activity Sales And Special Promotions

Price is one of the most important factors aff ecting the behaviour of consumers. When the price of a particular good or service is high, consumers are generally less willing to INFORMATIONThis is a Ready-Ed Publications' make a purchase, and their demand for the product tends to be lower. However, when the price of a particular good or service is low, consumers are generally more willing to make a purchase, and their demand for the product tends to be higher. Producers book preview. often apply this concept when they want to increase their normal sales at certain times of the year. Examples of special promotions used to infl uence consumer behaviour include:  sales such as ‘end of fi nancial year sales’ and ‘boxing day sales’;  store specials such as ‘25% off ’ and ‘buy two get one free’;  discount vouchers, for example ‘15% off your next purchase’. Such promotions are often used by businesses for items that may be hard to sell, overstocked or purchased under a special deal from the manufacturer. Time constraints, such as ‘for a limited time only’ and ‘only 3 days left’, may be used to create a sense of urgency in consumers so that they feel they can’t postpone their decision to make a purchase. Once attracted to a store by the deals presented, they may then be tempted to buy other goods and services on the spur of the moment. This is known as ‘impulse buying’ and can lead customers to make unplanned purchases that they may not have originally needed, wanted or budgeted for. Discount vouchers such as ‘15% off your next purchase’ are also used by retailers to entice customers to return to the store. The catch, however, is that they have to spend more money in order to receive the deal.

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Collect a range of fl yers and catalogues used by retailers to advertise in your local area. Create a collage of sales and special promotions. Explain how price infl uences the spending behaviour of consumers.

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_______________________________________________________ 3. Defi ne the term ‘impulse buying’ and outline at least one disadvantage of purchasing goods and services in this way. _______________________________________________________