Explain the Concept of the High\low Strategy

question 101

Essay

Explain the concept of the high\low strategy. Why is this an attractive strategy to marketers?

Comprehend the proper format for initiating professional phone calls.

Understand the importance of establishing rules for business meetings proactively.

Understanding the characteristics and implications of issuing preference shares.

Knowledge of dividend policies and their effect on preference and ordinary shares.

---

Definitions:

Price Elasticity

An assessment of the degree to which the demand or supply for a product varies following a price alteration.

Demand Curve

A graph showing the relationship between the price of a good and the amount of it that consumers are willing and able to purchase at various prices.

High-price Ranges

The upper levels of price points at which products or services are sold, often implying premium quality or exclusivity.

Perfectly Inelastic

Describes a situation in demand or supply where the quantity demanded or supplied does not change in response to a price change.