Answer to Question #272221 in Management for Ekay

Question

PERFORMANCE TASK (answer in another intermediate sheet of paper) 20 points A retailer selling T-shirts ants to launch a sales promotion. He normally sells his T-shirts at P200 each, but is willing to sell each at only P100 in order to boost sales. He is wondering what message would be most effective in advertising his sale: T-shirts P200, Buy One, Take One! T-shirts P200, Buy One, Get One Free! T-shirts P100 Off! In your opinion, which of the sale signs would be the most effective? Why? Defend your choice.

Answer 1

"T shirts P200, Buy one get, one free " is the most effective sale sign since it both entails the original price but also informs the customer that there is an offer of getting one T- shirt free if they are willing to buy one. The price is also very important since it also shows the quality of the good. Lowering the price directly without making the customer aware that the extra T- shirt is just an offer would make the customer question the quality of the product and therefore hesitate or fail to purchase completely.