Wal-Mart is a cost-leader in terms of its highly efficient supply chain and its ability to negotiate steep volume discounts from manufacturers.The retailer executes ________ by passing those savings on to consumers in the form of lower prices.
A) satisfaction-based pricing
B) reference pricing
C) relationship pricing
D) perceived pricing
E) efficiency pricing

Question

Quizplus · Accepted Answer

Wal-Mart's cost leadership strategy is based on the efficiency of its supply chain and its ability to negotiate steep volume discounts from manufacturers, which allows the company to offer lower prices to consumers. Therefore, the pricing strategy used by Wal-Mart is efficiency pricing, where the emphasis is on reducing costs to offer lower prices to customers.

Wal-Mart Is a Cost-Leader in Terms of Its Highly Efficient