What does promotional pricing aim to achieve?

Promotional pricing is a strategy used by businesses to temporarily reduce prices on products or services to stimulate sales. The primary goal of this tactic is often to clear out inventory that may be outdated or excessive. By lowering prices, companies can encourage customers to make purchases quickly, reducing stock levels. This approach can also create a sense of urgency among consumers, prompting them to buy before the promotional period ends. While this pricing strategy may have secondary benefits, such as attracting new customers or increasing short-term sales volume, the main objective is to move products off the shelf effectively. Thus, the focus is on inventory management rather than creating long-term brand loyalty, enhancing customer satisfaction, or improving product features.