Which of the following is a potential problem with a high-low pricing strategy?
A) It confuses and frustrates customers.
B) It places too much emphasis on nonprice competition.
C) It teaches customers to wait for sales, and therefore reduces profits.
D) It is difficult to implement.

Question

Quizplus · Accepted Answer

Firms that use a high-low pricing strategy set regular prices relatively high, but have many special sales where prices are lowered below those of the competition. This is a strategy used by many department stores. One problem with this approach is that customers soon learn not to buy anything at the "regular" price, but to wait instead for a sale.

Which of the Following Is a Potential Problem with a High-Low