By adding something small to the mix, such as colored tags, or separating the sales items, stores are able to create increased value perception, leading consumers to think that there’s something special about this product, and this place, in addition to the savings.
Another reason a business would resort to promotional pricing besides increasing loyalty or introducing a product, is to boost revenue growth in order to cover a short-term expense or debt commitment.
These stores are perhaps most interested in customer retention and loyalty, where after initially getting them in the store with the lowered pricing, they keep them coming back by offering loyalty awards, or mailing them coupons in the mail. Using the Internet has obviously played an increasingly large role in this area, and this course on online marketing will show you how to utilize this tool effectively.