Department stores such as Kohl's and JCPenney's practice high-low pricing by ________.
A) charging a constant, everyday low price
B) providing few or no temporary price discounts
C) increasing prices temporarily on select products
D) having frequent sale days for store credit-card holders
E) underpricing most consumer items

Question

Quizplus · Accepted Answer

Department stores such as Kohl's and JCPenney's practice high-low pricing by having frequent sale days for store credit-card holders. This encourages customers to apply for the store credit card and makes them feel special for receiving exclusive discounts, while also providing an opportunity for the stores to charge higher prices to non-cardholders. This pricing strategy can also create a sense of urgency for customers to make purchases during the sale days.

Department Stores Such as Kohl's and JCPenney's Practice High-Low Pricing