A car manufacturer offers to sell a particular brand of car at a price of ₹10,000 less for a limited period. This is which of the following type of sales promotion activity?

Correct option is B

A temporary reduction in the price of a product for a limited period, usually announced to boost sales or clear stock, is known as a rebate. Rebates are widely used in sales promotion when manufacturers want to:
· Encourage immediate purchase
· Clear inventory
· Attract price-sensitive customers
· Increase short-term demand
In the given case, the car manufacturer offers the car at ₹10,000 less for a limited time, which is a classic example of a rebate, not a discount. Discounts are generally offered at the point of sale on MRP or for bulk purchases, or cash discounts for early payment — and are usually a regular trade practice. Rebates, on the other hand, are special, promotional price reductions announced for a short duration.
Thus, the correct answer is (b) Rebate.
Information Booster
1. Rebate is a type of sales promotion where price reduction is offered temporarily to stimulate sales.
2. Rebate schemes are common in durable goods markets such as cars, electronics, and appliances.
3. Rebates help clear old models before launching new variants.
4. They are often used during festive seasons or year-end sales.
5. Rebates create a sense of urgency among buyers due to their limited-time nature.