Daffodil International University
Faculties and Departments => Business & Entrepreneurship => Business Administration => Topic started by: Jeta Majumder on March 30, 2014, 02:25:37 PM
-
The purchase of an article with a down payment, but the store retains the article until full payment is made, often in a series of installments.
-
A purchasing method that allows a consumer to put a product on hold by placing a deposit on the item. Layaway allows the customer to make smaller payments on the product until the purchase price is paid in full, rather than paying for the item with credit and adding interest to the cost. A layaway plan ensures that the chosen merchandise will be in stock and ready for pick-up when the final payment is made. [Source:http://www.investopedia.com]
Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University
-
This method works for consumers who have a limited amount of disposable income and are unable to make larger purchases all at once. It also works to retailers' advantage by allowing them to offer products to lower-income customers. Layaway can also be used as a savings plan; because the customer has already made a commitment to purchase the product on layaway, he or she can not give in to temptation to spend the money elsewhere.
-
Thank you Sir... :D