There are several local stores within the immediate 1 mile radius of Towson Univ

Question

There are several local stores within the immediate 1 mile radius of Towson University. Many offer discounts from movie tickets to food specials? But are these discounts any different from currently priced items (for example they may charge 50 cents less for a movie ticket, but the times are during peak class hours). Do you think any of these discounts may be taking advantage of college students by in some cases requiring they have a minimum cost to meet to receive the discount or a time frame? By this, meaning students may be forced to buy more than their initial demand but spending more per unit cost?

Explanation / Answer

The local stores use such promotinal strategies due to high competition in the market. When the discounts are offered strategically , they will plan to provide it during peak class hours which will increase the cost for buyers indirectly but help the stores to cover their discounts offered . In such cases , students would easily get attracted and shall be lured to buy more than their usual demands without realising an increase in their per unit costs incurred .

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