Question

Sellers using an edlp pricing strategy often communicate their strategy through the creative use of a reference price. True or False

Answer 1

Answer:

False

Explanation:

EDLP is an abbreviation that stands for "every day low pricing". Under such a pricing strategy, the retailer opts to sell products on the day's lowest prices instead of formally fixing sales periods or announcing discounts.

It means setting fair prices and maintaining such prices over a long period of time. This is beneficial to the retailers in the sense that instead of focusing their marketing strategy on prices and discounts, they can effectively focus upon the product quality.

With respect to the customers, the benefit being, they do not have to keep track of products going on sales or wait for availability of discounts before making a purchase decision.

Walmart represents the best example of a company who has successfully employed this pricing strategy over a long period of time.