Question

An everyday low pricing strategy stresses the continuity of retail prices ____ (A) at a level above regular retail prices.(B) at a level between the regular price and the deep-discount sale prices of competitors. (C) at a level below the deep-discount sales prices of competitors. based on variable production costs.(D) at a price skimming level.

Answer 1

Answer:

B is the correct option.

Explanation:

Everyday low price (EDLP) is the pricing strategy under which the retail stores provides low price without waiting for the sale events. In this strategy, the firm sets a low price and maintains it for a long time horizon. Walmart is One company who succeeded due to everyday low pricing strategy. The retailer following this strategy offers its customers low prices throughout the year. Although this strategy offers slim margins the retailer manages to generate huge profits.