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?

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Definitions:

Wasted Capacity

The portion of production capacity that goes unused or is not effectively utilized.

Capacity Shortage

A situation where the demand for a product or service exceeds the available supply or production capability.

Peak Periods

Refers to times of highest demand or activity within a business or market sector, often requiring increased resources or capacity.

Off-Peak Periods

Times when demand for a service or product is lower, often leading to reduced prices or rates to encourage usage or purchase during these times.