A retailer that uses the list price for products but runs frequent promotions that heavily discount some products is using which type of pricing strategy?
A) price skimming
B) trial pricing
C) penetration pricing
D) peak load pricing
E) high/low pricing

Question

Quizplus · Accepted Answer

The retailer is using a high/low pricing strategy, where they set a high list price but offer frequent discounts to attract customers. This strategy can be effective in creating a sense of urgency and excitement around promotions, while still maintaining a perceived value for the product. It is not price skimming, as that strategy involves setting a high price initially and gradually lowering it over time. It is also not penetration pricing or trial pricing, as those strategies involve setting a low price initially to gain market share or encourage new customers to try a product. Finally, it is not peak load pricing, as that strategy involves charging higher prices during peak periods of demand.

A Retailer That Uses the List Price for Products but Runs