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'The best example of a tactical action that a company might use in response to a competitive attack is to offer price discounts and rebates.
A rebate is a reduction in the regular price of a product or service to generate or increase sales. These rebates, also commonly referred to as "sales" or markdowns, are used by both retailers and manufacturers in various industries.
A discount is defined as a discounted price or a sale at a price lower than the price at which an item would normally be sold. Examples of what are called discounts are handbags that sell at 50% of his regular price, and stores that focus on selling designer his items at below market prices.
Discounts lead to lower selling prices for products, making them more attractive to customers. Price reductions have a psychological effect on customers leading to a purchase. There are two types of discounts offered: transactional discounts and cash discounts.
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