Which pricing strategy entails temporarily pricing products below the list price to boost short-run sales?

Promotional pricing is a strategy where businesses temporarily reduce prices below the list or usual selling price to stimulate short-term sales. This approach is often utilized to attract customers, clear inventory, introduce new products, or establish market presence. The key idea is to create a sense of urgency and encourage consumers to make a purchase due to the perceived savings or special offer.

Promotional pricing can take several forms, such as discounts, buy-one-get-one-free offers, or time-limited sales events. The effectiveness of this strategy lies in its ability to generate a quick influx of sales and engage customers who may have hesitated at higher price points.

Alternative strategies like destroyer pricing involve setting prices so low that they are not sustainable in the long run, often to eliminate competition rather than boost temporary sales. Demand-oriented pricing focuses on adjusting prices based on consumer demand and willingness to pay, rather than a temporary boost. Psychological pricing aims to attract customers through price points that seem more appealing, such as pricing something at $9.99 instead of $10, but does not specifically emphasize short-term sales boosts through reduced pricing.