Which policy would you use to explain to customers why a discount is being offered and what value they get?

• A. Guardrails on promotion depth/duration
• B. Communication of value
• C. Cross-elasticities with other products
• D. Ensuring alternative channels remain profitable

Answer: (B)

Communicating value focuses on translating the discount into concrete customer benefits and explaining why it’s offered. When customers understand what they gain—how much they save, which features or services are included, and why acting now provides extra value—the promotion feels purposeful rather than arbitrary price cuts. This messaging anchors the discount in the brand’s value proposition and helps customers see the payoff, making the offer more compelling and easier to justify.

Guardrails on promotion depth or duration set limits on how big or how long a discount can be, but they don’t explain the benefits to customers. Cross-elasticities with other products deal with how price changes affect demand for related items, not the messaging of value. Ensuring alternative channels remain profitable focuses on channel economics, not customer-facing explanations of the discount.