One of the problems associated with an everyday low pricing (EDLP)strategy is that
A) stores may have to offer too many noncumulative wholesale discounts.
B) some consumers may associate EDLP with lower quality goods.
C) the retailer may be accused of price discrimination.
D) too many coupons may be redeemed.
E) it may conflict with price-based cost calculations.

Question

Quizplus · Accepted Answer

Some consumers may associate EDLP with lower quality goods. This is because they may perceive that the lower price is due to lower quality rather than a pricing strategy. This can lead to a negative impact on the retailer's brand image and reputation.

One of the Problems Associated with an Everyday Low Pricing