What is often a goal of promotional pricing strategies?

Promotional pricing strategies are commonly used to create an urgency that encourages customers to make a purchase quickly. This approach typically involves temporarily lowering prices on specific products or services to draw in more customers. The primary goal is to expand the customer base in a short period, especially during key sales periods or events.

By offering products at a discount, businesses can capture the attention of price-sensitive consumers who may not have otherwise considered purchasing the product at full price. This strategy often not only increases sales volumes but also helps to enhance brand visibility and market share in a competitive environment. As these promotions attract new customers, there is also potential for repeat business if these customers are satisfied with their experience.

Other options, while they may have relevance in business strategies, do not align with the primary objective of promotional pricing. For instance, increasing product uniqueness generally focuses on differentiation strategies, and maintaining high profit margins is more about pricing strategies that focus on value perception rather than temporary discounts. Reducing competition typically involves broader strategic moves, such as mergers or market positioning, rather than the short-term techniques employed in promotional pricing.