Advantages of an EDLP approach include:
A) Reduced price wars and reduced advertising
B) Increased profits due to price discrimination
C) Improved inventory management due to a "no rain check" policy
D) Reduced rain checks due to increased number of sales events
E) All of these

Question

Quizplus · Accepted Answer

An EDLP (Everyday Low Pricing) approach typically involves offering low prices consistently, rather than relying on sales events or promotions. As a result, there are fewer price wars and less advertising needed, leading to cost savings for the retailer. While EDLP may not necessarily involve price discrimination, it can help with inventory management by reducing the need for "rain checks" (promises to honor a sale price when an item is out of stock). Option D suggests the opposite (that there may be more rain checks), so it's not a valid advantage. Therefore, the best choice is A, which accurately describes the benefits of an EDLP strategy.

Advantages of an EDLP Approach Include