Although prices for most goods at CDz, your local music and video store, are higher than prices you can find online and at discount stores, it also generally has selected merchandise on sale at very attractive prices. Which pricing strategy has CDz apparently decided to use?

Question

Quizplus · Accepted Answer

CDz has apparently decided to use high/low pricing strategy, which involves setting high prices initially and then offering selected merchandise on sale at very attractive prices. This strategy can be effective in attracting price-sensitive customers who are willing to wait for a sale, while also generating revenue from those who are willing to pay the initially high prices.

Although Prices for Most Goods at CDz, Your Local Music