The ________ strategy results in a peak during the discount week,often followed by a steep drop in demand during the following weeks.
A)Everyday low pricing
B)High-low pricing
C)Fixed price
D)Menu pricing

Question

Quizplus · Accepted Answer

The high-low pricing strategy involves offering products at a high price initially and then discounting them during a specific period, resulting in a peak in demand during the discount week. However, once the discount week is over, demand tends to drop steeply, leading to a decrease in sales. This is in contrast to the everyday low pricing strategy, where prices are kept low at all times, resulting in a more consistent demand pattern. Fixed pricing and menu pricing are not directly related to the peak and drop in demand pattern seen with high-low pricing.

The ________ Strategy Results in a Peak During the Discount