Kroger uses a strategy of price discrimination to increase profits. It charges higher prices to customers who are not price sensitive and low prices to price sensitive customers who will wait for sales. Identify the pricing strategy of Kroger.
A) Target pricing
B) Odd-even pricing
C) High/low pricing
D) Discount pricing

Question

Quizplus · Accepted Answer

High/low pricing allows retailers to charge higher prices to customers who are not price sensitive and are willing to pay the "high" price and lower prices to price-sensitive customers who will wait for the "low" sale price.

Kroger Uses a Strategy of Price Discrimination to Increase Profits