If an Indian cuisine enterprise gives too much discount, what is the long-term risk?
Answer and explanation
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.
Frequently asked questions
What is the correct answer to this question?
Brand value and profit margin may weaken
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Traditional occupations in India - Indian cuisine.
