What benefit does a retailer experience when using a high/low strategy rather than an EDLP strategy?
A) A high price sends the consumer a message of quality that the EDLP strategy does not communicate
B) EDLP is much more difficult to maintain than high/low pricing strategy
C) High/low pricing strategies create excitement
D) The same merchandise appeals to consumers who want quality and those who wait for bargains
E) All of these are benefits

Question

Quizplus · Accepted Answer

All of the given options are benefits of using a high/low pricing strategy over an EDLP strategy. High prices can communicate quality, it is easier to maintain, it creates excitement, and it appeals to both quality-seeking and bargain-seeking consumers. Therefore, using a high/low strategy offers multiple benefits to retailers.

What Benefit Does a Retailer Experience When Using a High/low