Walmart and Costco achieve longterm profitability through volume sales. They both use _____ pricing strategy.

Question

Walmart and Costco achieve long­term profitability through volume sales. They both use _____ pricing strategy.

Quizplus · Accepted Answer

Walmart and Costco rely on offering everyday low prices to attract customers and encourage them to make bulk purchases. They do not heavily rely on promotions or discounts, which makes the everyday-low pricing strategy the most effective. Penetration pricing involves offering low prices initially to attract customers and gain market share, high/low pricing involves offering high prices initially, then discounting them periodically, and loss-leader pricing involves offering selected items at a loss to attract customers.

Walmart and Costco Achieve Long­term Profitability Through Volume Sales

Walmart and Costco Achieve Longterm Profitability Through Volume Sales