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

Question 82

Multiple Choice

How can the use of an EDLP strategy increase a retailer's profit margin?


A) A more predictable demand increases the likelihood of stockouts.
B) EDLP increases the large variations in demand caused by frequent sales.
C) The stable prices caused by EDLP require the use of more weekly advertising.
D) Employees provide less customer service because of the sale-stimulated throngs of people.
E) EDLP reduces the retailer operating expenses because employees do not have to spend time continually making price changes.

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