Posted in Marketing and Strategy Terms, Total Reads: 504
Definition: Deep Discounts
Deep discounts are the heavy discounts offered on product or services. Under this strategy, companies try to sell the low priced items in high quantities. For this kind of discounting strategy the company should make sure to cut costs & remain competitive.
These kind of discounts are used by retailers as a trick to increase the customer footfall at their doors & lure customer to shop more than he/she could have purchased without the discount. The retailers also need to be aware of the fact that now a days customer is becoming more aware & cautious of what they purchase and hence such deep discounts may not tempt the customer to buy more.
For example the heavy discounts offered during festive season will come under Deep discounts. Like you will get a discount of 49%+20% off on your shopping during Christmas. The recently Big Billion day launched by Flipkart offered heavy discounts to the customers. Such discounts can come under Deep Discounts.