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Special offer refers to the special discounts or discounts or offers given by the producer to the consumers in order to maximize sales. This is generally done so that the consumer is persuaded to buy the commodity they weren't initially ready to buy. Some of the special offers can be heavy discounts, buy 1 get 1 free offer or other such exciting offers, gift cards or coupons, etc.

The economics behind such a behavior of the producer comes from the utility approach, indifference curve and monotonic preferences. When a producer realizes that the consumer is inclined towards their product but is still not purchasing because the marginal utility obtained by consuming the commodity does not match its price, basically is lower than the price then the producer decides to take some steps. Either the producer lowers the price of the good by giving discounts or combo offers and hence trying to achieve a level where the price is equal or less than the marginal utility of the consumer or gives something free with their product, which from the concept of monotonic preferences persuades the consumer to buy it. Monotonic preferences say that the more the consumer consumers the higher is their utility.

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Image category: Special Offer / Download Special Offer Zip / Parent category: Internet

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