What strategy aims at fostering immediate customer interest through limited-time reductions in price?

Promotional pricing is a strategy that focuses on generating immediate customer interest by offering temporary price reductions or special discounts. This approach is commonly used during sales events, holidays, or to launch new products, encouraging customers to make a purchase due to the urgency of the time-limited offer. By temporarily lowering prices, businesses can attract attention, increase sales volume, and potentially gain new customers who may not have considered the product at its regular price.

In contrast, market skimming involves setting high initial prices to maximize profits from customers willing to pay more initially, while penetration pricing sets a low initial price to gain market share quickly. Quality assurance, on the other hand, relates more to maintaining product or service standards rather than influencing pricing strategy. Thus, promotional pricing specifically targets the immediate impact on customer behavior through time-sensitive offers.