Manufacturers seek to reduce extreme shifts in demand due to stocking up by wholesalers,retailers,and final consumers through ________.
A) a one-price policy
B) leader pricing
C) everyday low pricing (EDLP)
D) customary pricing

Question

Quizplus · Accepted Answer

Everyday low pricing (EDLP) is a pricing strategy in which a company offers a consistent low price for its products without any temporary discounts or sales promotions. By adopting this pricing strategy, the manufacturer can reduce extreme shifts in demand due to stocking up by wholesalers, retailers, and final consumers as they know that the price will remain the same over time, regardless of any artificial discounts. This also helps the manufacturer to build customer loyalty and reduce the need for frequent price changes.

Manufacturers Seek to Reduce Extreme Shifts in Demand Due to Stocking