INCENTIVES ON FESTIVAL BASIS

FESTIVAL SEASON SALES

People respond to incentives is the fourth principle of economics. An incentive is something that motivates an individual to perform an action. It includes in decision making and competition.It is the tool for explaining human behavior, these incentives can be either positive or negative. Because rational people make decisions by comparing costs and benefits and they respond to incentives.

Positive incentive : These incentives are used to attract consumers. These are rewards like a bonus,discounts etc..
Example: Employee of the month raise award

Negative incentive : Negative incentives penalize people for making certain choices or behaving in a certain way.
Example: Fines

When the price of the good rises sharply, people who need the same quantities of the product but can make do with lower quality, turn to inferior products. In the economic theory inferior products are those for which demand rises when the purchasing power declines,
During the festival seasons..there will be many rewards on clothing, accessories etc..then people focus and attract to those called as festival season sales .This is called people respond to positive incentives .