What is the pricing strategy that uses coupons and promotional markdowns to encourage purchases?

Discount pricing is a strategy that utilizes coupons and promotional markdowns to stimulate consumer purchasing behavior. This approach is fundamentally based on reducing the price of products or services temporarily to create a sense of urgency or to encourage customers to buy. By lowering prices through discounts, retailers can attract price-sensitive consumers and increase sales volume, particularly during promotional events or seasonal sales. This strategy often appeals to a broad customer base, including those who may not have considered purchasing at the original price.

While value pricing focuses on aligning the price with the perceived value of the product, premium pricing sets prices higher to emphasize quality or exclusivity. Dynamic pricing is a more fluid strategy that varies prices based on real-time demand and supply conditions, making it less predictable. Discount pricing, on the other hand, emphasizes immediate price reduction to drive sales, making it a distinct and targeted approach designed to boost consumer interest and transaction volume effectively.