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Given below are two statements. one labelled as Assertion (A) and the other labelled as Reason (R).  Assertion (A): Auto companies and other consumer goods companies offer cash rebates to encourage purchase of the manufacturer's products within a specified period  Reason (R): The same product is priced differently at different times  In the context of the two statements above related to pricing strategy, which one of the following options is correct? 

Given below are two statements. one labelled as Assertion (A) and the other labelled as Reason (R).  Assertion (A): Auto companies and other consumer goods companies offer cash rebates to encourage purchase of the manufacturer's products within a specified period  Reason (R): The same product is priced differently at different times  In the context of the two statements above related to pricing strategy, which one of the following options is correct?  Correct Answer (A) is correct, but (R) is not correct

Assertion (A): Auto companies and other consumer goods companies offer cash rebates to encourage the purchase of the manufacturer's products within a specified period.

Explanation:

  1. Cash rebate is an offer given to consumers for a cash discount when they purchase a consumer good.
  2. Hence a cash rebate can be thought of as a discount coupon.
  3. Usually, the rebate is offered by either the manufacturer of the product or the retailer.
  4. Cash rebate is a sales promotion strategy adopted by marketers to provide incentives in order to entice consumers into buying the product.
  5. Thus, the assertion is correct.

Reason (R): The same product is priced differently at different times.

Explanation:

  1. Automobile products have a highly elastic demand.
  2. Thus, the consumer will wait for the price to fall if the product is priced differently at different times.
  3. Consumer goods are generally priced at the Maximum Retail Price (MRP). 
  4. A Maximum Retail Price is a manufacturer calculated price that is the highest price that can be charged for a product sold in India and Bangladesh.
  5. Thus, the reason is incorrect.

Related Questions

Assertion (A): Auto companies and other consumer goods companies offer cash rebates to encourage purchase of the manufacturer's products within a specified period
Reason (R): The same product is priced differently at different times.
In the context of the two statements above to pricing strategy, which one of the following options is correct?
Match List I with List II: List I (Pricing Strategies) List II (Description) (A) Ramsay pricing (I) Setting a high price when a product is first introduced and gradually lowering price as it gains scale (B) Price skimming (II) Firm charges lower price (than the ongoing price) to gain market entry (C) Cost plus pricing (III) Price deviations from marginal cost should be inversely proportional to price elasticity of the product (D) Penetration pricing (IV) It is full cost pricing strategy that also includes mark up for target return, degree of competition, price elasticity and availability of substitutes. Choose the correct answer from the options given below:
Which one of the following is the correct sequence of various stages of operating cycle of a manufacturing company?  1. Raw material conversion period, work-in-progress conversion period, Finished goods conversion period, Receivables conversion period 2. Raw material conversion period, work-in-progress conversion period, Creditors payment period, Receivables conversion period 3. Creditor payment period. Raw material conversion period, Receivables conversion period, work-in- progress conversion period 4. Raw material conversion period, Finished goods conversion period, work-in- progress conversion period. Receivables conversion period 
Product line pricing strategy includes which combination of the following?
1. Public utility pricing
2. Complementary goods pricing
3. Spare parts pricing
4. Load factor pricing
Select the correct answer:
An assertion and a reason are given below. Assertion: The phenomenon of nuclear fission generates great energy. Reason: The process in which a nucleus is broken into two parts is called nuclear fission. Choose the answer. A. Both Assertion and Reason are true and Reason is the correct explanation of Assertion. B. Both Assertion and Reason are true but Reason is not the correct explanation of Assertion. C. Both Assertion and Reason are false. D. Assertion is true but Reason is false.
Which of the following are examples of cash flow from operating activities as per AS-7?
1. Cash receipts from the sale of goods and the rendering of services.
2. Cash receipts from disposal of intangible assets.
3. Cash receipts from royalties, fees, commissions and other revenue.
4. Cash payments to suppliers for goods and services.
5. Cash proceeds from issuing shares or other similar instruments.
6. Cash payments to and on behalf of employees.
Select the correct answer:
Given below are two statements. One is labelled as Assertion (A) and the other is labelled as Reason (R).  Assertion (A): If the firm is prepared to incur increased cost on transportation, it may be in a position to reduce its inventory cost  Reason (R) : As in such a case, the firm can use the fastest mode of transport and rush the goods / stocks to the desired warehouse, unmindful of the cost of transportation  In the context of the above two statements related to logistics management, which of the following options is correct  1. Both A) and R) true and R) is the correct explanation of A) 2. Both A) and R) true but R) is NOT the correct explanation of A) 3. A) is true but R) is false 4. A) is false but R) is true 
Simplify the value of $$\frac{{{\text{0}}{\text{.9}} \times {\text{0}}{\text{.9}} \times {\text{0}}{\text{.9 + 0}}{\text{.2}} \times {\text{0}}{\text{.2}} \times {\text{0}}{\text{.2 + 0}}{\text{.3}} \times {\text{0}}{\text{.3}} \times {\text{0}}{\text{.3}} - {\text{3}} \times 0.9 \times {\text{0}}{\text{.2}} \times {\text{0}}{\text{.3}}}}{{{\text{0}}{\text{.9}} \times {\text{0}}{\text{.9 + 0}}{\text{.2}} \times {\text{0}}{\text{.2 + 0}}{\text{.3}} \times {\text{0}}{\text{.3}} - 0.9 \times {\text{0}}{\text{.2}} - {\text{0}}{\text{.2}} \times {\text{0}}{\text{.3}} - 0.3 \times 0.9}} = ?$$
$$\frac{{38 \times 38 \times 38 + 34 \times 34 \times 34 + 28 \times 28 \times 28 - 38 \times 34 \times 84}}{{38 \times 38 + 34 \times 34 + 28 \times 28 - 38 \times 34 - 34 \times 28 - 38 \times 28}}$$            is equal to = ?
Given below are two statements-one labelled as Assertion (A) and the other labelled as Reason (R) Assertion (A) : The early medieval period possessed some critical features of feudalism, but it significantly differed from European feudalism. Reason (R) : The early medieval South India was a period of urban growth as is evidenced by the flourishing crafts, trade, trade guilds and urban centres. In the context of the above two statements, which of the following is correct?