Which of the following pricing strategies is most likely used by a seller to target an impulse buyer?

• A. Offering limited-time discounts at the point of sale
• B. Using price discrimination based on consumer income
• C. Implementing a long-term loyalty rewards program
• D. Setting prices based on cost-plus markup

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of an impulse buyer. An impulse buyer is a consumer who makes spontaneous, unplanned purchases, often triggered by immediate incentives or emotional responses rather than careful consideration.
2. Step 2: Analyze each pricing strategy in relation to impulse buying behavior. For example, limited-time discounts create urgency, encouraging quick decisions, which aligns with impulse buying tendencies.
3. Step 3: Evaluate 'price discrimination based on consumer income'—this strategy targets different consumer segments based on willingness or ability to pay, which is more about maximizing revenue than triggering impulse purchases.
4. Step 4: Consider 'implementing a long-term loyalty rewards program'—this strategy aims to build repeat business over time, appealing to planned purchasing behavior rather than spontaneous buying.
5. Step 5: Assess 'setting prices based on cost-plus markup'—this is a straightforward pricing method focused on covering costs plus profit margin, without specific incentives to trigger impulse buying.