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In a pricing system, what is the key advantage of offering time-limited coupons to customers?

easy📝 Conceptual Q1 of 15
LLD - Design — Online Shopping Cart
In a pricing system, what is the key advantage of offering time-limited coupons to customers?
AReduces the need for inventory management
BIncreases the base price of products
CEncourages quick purchases by creating urgency
DGuarantees higher profit margins on all sales
Step-by-Step Solution
Solution:
  1. Step 1: Understand coupon purpose

    Coupons often create urgency to boost sales within a limited time.
  2. Step 2: Analyze options

    Only Encourages quick purchases by creating urgency correctly describes this advantage; others are unrelated or incorrect.
  3. Final Answer:

    Encourages quick purchases by creating urgency -> Option C
  4. Quick Check:

    Time-limited coupons drive faster buying decisions [OK]
Quick Trick: Time-limited coupons create urgency to boost sales [OK]
Common Mistakes:
  • Assuming coupons always increase product price
  • Confusing coupons with inventory controls
  • Believing coupons guarantee higher profits on every sale

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