Answer:
The name of this technique is 'rebate'. Under it, in order to clear the excess stock, products are offered at reduced prices. Two other techniques are explained below: (i) Finance @ 0% Under this method, the product is sold and money is received in instalments at 0% rate of interest. The seller determines the number of instalments in which the price of the product will be recovered from the customer. No interest is received on these instalments, e.g. Bajaj offers a bike of Rs. 40,000 in 10 easy instalments of Rs. 4,000 each. (ii) Samples Under this method, the producer distributes free samples of his product among the consumers. Sales representatives distribute these samples from door -to-door. This method is mostly used for products of daily use e.g. washing powder, tea, toothpaste, etc.
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