Name: Ian Chris M.

Salazar

Year and Section: BAMM 4C

REFLECTION FOR GROUP 6 REPORT

Based on the discussion of group 6, in my understanding of them, promotional pricing is

a pricing strategy where a corporation temporarily lowers the price of a product or service to
increase sales. Dedicated promotional materials or marketing efforts are often used to support
those bargains and discounts. A discount that goes up as you spend more. For example, spend
100 pesos and get 20% off; spend 200 pesos and get 30% off. One of the most effective sales
methods is promotional pricing. Prices can be cut by a percentage for a short time, and an item is
therefore said to be on sale. This increases demand for the goods from price-conscious buyers.
There are also some types of sales promotions, like free trials, limited-time free shipping, first-
purchase coupons, and the most popular, buy one, get one free. I was also impressed that the
reporter discussed the benefits of price promotions, such as creating a sense of urgency among
your target audience, an effective way of gaining new customers, pricing advantages gained
through various promotions, and generating more revenue and cash flow in the short term. It
helps businesses to effectively dispose of obsolete inventories. Moreover, the reporter
investigates the detrimental impact of price promotions. Because lower-priced goods are
associated with lesser quality, sales promotions might harm the brand's perceived quality. People
may create a shopping habit in which they wait for sales and do not buy items at a premium
price. People who buy a lot for their own purposes after the promotion time can also rename it,
which might benefit us in the future when we conduct business.