How can the use of an EDLP strategy increase a retailer's profit margin?
A) Employees do not have to continually make price reductions
B) EDLP increases the large variations in demand caused by frequent sales
C) The stable prices caused by EDLP requires the use of more weekly advertising
D) Employees provide less customer service because of the sale-stimulated numbers of people
E) A more predictable demand increases the likelihood of stockouts

Question

Quizplus · Accepted Answer

An EDLP strategy means maintaining a consistently low price rather than having frequent sales and promotional discounts. This reduces the need for employees to constantly adjust prices, which saves time and resources, increasing the profit margin for the retailer.

How Can the Use of an EDLP Strategy Increase a Retailer's