ECONOMICS
MARKETS AND PRICES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Benchmarked against its competitors
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Kept low in order to fight off the competition
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Raised in order to differentiate it from its competitors
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Linked to the market share of the product
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Detailed explanation-1: -EDLP Strategy (Every Day Low Pricing Strategy) They typically employ an “Everyday Low Price Strategy” (EDLP). These discount retailers are focused on keeping prices lower than the competition, so they will often offer price matching and consistently maintain low prices throughout the entire season.
Detailed explanation-2: -What Is Penetration Pricing? Penetration pricing is a marketing strategy used by businesses to attract customers to a new product or service by offering a lower price during its initial offering. The lower price helps a new product or service penetrate the market and attract customers away from competitors.
Detailed explanation-3: -Summary. EDLP is a pricing strategy in which a company charges a consistently low price over a long-time horizon. For the consumer, EDLP simplifies decision making and search costs. For the company, EDLP minimizes marketing costs, staff efforts, and helps with demand forecasting.
Detailed explanation-4: -1) Stand by your premium pricing. It may seem contradictory, but charging a premium price–and sticking to it–can actually be used as a competitive advantage. 2) Sell value, not price. 3) Master product delivery. 4) Practice helpful selling. 02-Dec-2015