Discount

Meaning:

A discount is defined as a reduction in the original price of a product or service,  intended to stimulate consumer purchasing behavior. Discounts make the price lower than

usual, encouraging customers to buy more, act quickly, or try new products.

Example:

For instance, if a smartphone is priced at ₹30,000 and is offered with a 15%  discount, the discounted price would be ₹25,500, making it more attractive to potential  buyers.

How to understand discounts:

Discounts play a crucial role in attracting customers, enhancing perceived value, and driving  sales volume, particularly during periods of low demand.  They support marketing efforts by making products more visible and competitive in the  marketplace.

Importance of Discounts:

Discounts foster customer loyalty by providing special deals and rewards for frequent  shoppers.

They create urgency, encouraging immediate purchases and helping to manage inventory  effectively.

Types of Discounts:

Percentage Discount: e.g., 10% off, 30% off.

Flat Discount: A fixed amount reduction, such as ₹200 off.

Buy More – Save More: Offers like Buy 1 Get 1 Free (BOGO) or Buy 2 Get 10% Off.

Seasonal Discount: Discounts offered during festivals, year-end clearance, or seasonal sales.

Trade Discount: Discounts offered to retailers or wholesalers by manufacturers.

Cash Discount: Given for quick or immediate payment.

Loyalty Discount: Rewards for frequent customers or members.

Coupon / Promo Code Discount: Special codes used online or in-store for discounts.

Early Bird Discount: Lower prices for customers who purchase early.