What Benefit Does a Retailer Experience When Using a High/low

question 62

Multiple Choice

What benefit does a retailer experience when using a high/low strategy rather than an EDLP strategy?

• A) A high price sends the consumer a message of quality that the EDLP strategy does not communicate
• B) EDLP is much more difficult to maintain than high/low pricing strategy
• C) High/low pricing strategies create excitement
• D) The same merchandise appeals to consumers who want quality and those who wait for bargains
• E) All of these are benefits

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Definitions:

In-kind Transfers

Non-cash goods and services provided by governments or organizations to individuals, such as food assistance or housing.

Food Stamps

Government-issued coupons or electronic benefits that low-income individuals use to buy food.

Housing Subsidies

Financial assistance provided by the government or private entities to help individuals or households afford housing costs, such as rent or mortgage payments.

Gini Coefficient

An index measuring the degree of income inequality in a population, ranging from 0 (perfect equality) to 1 (maximum inequality).