Homework 2 (1-4 Final)

Homework 2 (1-4 Final) - Natalya Grauer Homework#2 Shannon...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Natalya Grauer Homework #2 Shannon Kehl John Lilly #1: Why would a firm want to offer pricing promotions during its peak-demand periods? A firm would want to offer pricing promotions during its peak-demand periods because the promotion may actually increase demand (instead of increasing forward purchasing) therefore greatly increasing overall profits. If forward buying makes up a very small portion of promotion purchases, then it is optimal to offer promotions during peak- demand periods. Why would a firm want to offer pricing promotions during its low-demand periods? A firm would want to offer pricing promotions during its low-demand periods because it could draw in consumers who normally wouldn’t purchase the product. Even though promotions may also cause forward purchasing, total profit is generally higher than it would be without a promotion and average inventory generally decreases. #2:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This document was uploaded on 11/04/2011 for the course BUSI 560 at UNC.

Page1 / 3

Homework 2 (1-4 Final) - Natalya Grauer Homework#2 Shannon...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online