If an Indian cuisine enterprise gives too much discount, what is the long-term risk?

Correct answer: Brand value and profit margin may weaken

Excessive discounting can make customers perceive the regular price as too high and encourage them to buy only during discounts. This reduces profit margins and may damage the enterprise’s long-term brand image and ability to maintain quality. Food safety does not improve because of discounts; it depends on hygiene, storage and safety standards. Exam tip: In pricing questions, balance higher sales with profitability and brand value.