The fundamental philosophy behind ________ is to reduce investment in promotion and transfer part of the savings to lower price.
A) price bundling
B) target return on investment pricing
C) variable pricing
D) everyday low pricing
E) reverse auctions

Question

Quizplus · Accepted Answer

The philosophy described in the question is aligned with the concept of everyday low pricing (EDLP), which involves offering consistently low prices to consumers without the use of discounts or promotions. The idea is that the company saves money on advertising and promotion and can pass those savings along to customers in the form of lower prices. This approach is often associated with retailers such as Walmart and is intended to create value for customers while driving volume and loyalty.

The Fundamental Philosophy Behind ________ Is to Reduce Investment in Promotion