Recall & Review
beginner
What is a pricing strategy in system design?
A pricing strategy defines how a system sets prices for products or services, including rules for discounts, coupons, and promotions to attract customers and increase sales.
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beginner
How do coupons differ from discounts in pricing systems?
Coupons are codes or tokens customers apply to get a price reduction, often with conditions. Discounts are direct price reductions applied automatically or manually without needing a code.
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intermediate
What is the role of validation in coupon application?
Validation checks if a coupon is valid, not expired, applicable to the product or user, and meets usage limits before applying the discount.
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intermediate
Why is scalability important in pricing strategy systems?
Scalability ensures the system can handle many users applying discounts or coupons simultaneously without slowing down or errors.
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beginner
Name two common discount types used in pricing strategies.
Percentage discounts (e.g., 20% off) and fixed amount discounts (e.g., $10 off).
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What must a system check before applying a coupon?
✗ Incorrect
The system must verify coupon validity, expiration, and usage limits before applying it.
Which discount type reduces price by a fixed amount?
✗ Incorrect
Fixed amount discounts subtract a set value from the price.
Why use coupons instead of direct discounts?
✗ Incorrect
Coupons help track which promotions customers use.
What happens if a coupon is expired?
✗ Incorrect
Expired coupons are rejected and cannot be applied.
Which is a key challenge in pricing strategy systems?
✗ Incorrect
Systems must scale to handle many discount requests at once.
Explain how a system validates and applies a coupon during checkout.
Think about the steps from receiving a coupon code to updating the final price.
You got /6 concepts.
Describe the differences and use cases for percentage discounts versus fixed amount discounts.
Consider how each discount affects price and customer appeal.
You got /5 concepts.