Texas A&M University (TAMU) AGEC340 Agribusiness Management Exam 2 Practice

Question: 1 / 400

What does "price protection program" in early-order discount pricing assure to customers?

Guaranteed delivery of products

A rebate on excessive charges

A refund on any price drop after the purchase

The concept of a "price protection program" in early-order discount pricing primarily assures customers of a refund on any price drop that occurs after their purchase. This mechanism is valuable as it reduces the financial risk associated with making a purchase when prices may fluctuate. Customers are incentivized to place orders early with the assurance that, should the price decrease, they will receive a refund that offsets that drop, ensuring they do not feel penalized for making a decision before a potential price reduction.

In this context, guaranteed delivery of products, rebates on excessive charges, and future discounts on subsequent orders do not align with the core principle of a price protection program. These aspects are related to logistical assurances, charge corrections, or loyalty incentives, respectively, but they do not address the specific concern of price fluctuations that price protection programs directly target.

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Future discounts on subsequent orders

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