Why would a business selling fur coats want to limit the discount on them during a promotion?

Responses

If prices are too low, customers will question the quality.

A discount suggests that the product is defective and unsellable.

No one who buys luxury goods will participate in a promotion.

Few customers will buy more than one, so a discount is irrelevant.

1 answer

A business selling fur coats would want to limit the discount during a promotion for several reasons, and the most relevant response is:

If prices are too low, customers will question the quality.

Luxury goods, including fur coats, are often associated with high quality and exclusivity. Significant discounts can lead consumers to perceive the product as being of lower quality or as outdated or unwanted stock. Maintaining higher price points helps to preserve the brand’s image and perceived value in the eyes of potential buyers.