Which of the following is an advantage of using the everyday low pricing (EDLP)strategy?
A)This strategy allows retailers to charge higher prices to customers who are not price-sensitive and will pay the "high" price.
B)This strategy allows retailers to get rid of slow-selling merchandise.
C)This strategy tends to reduce advertising and operating expenses.
D)This strategy,when implemented,tends to draw a lot of customers and create a lot of excitement.

Question

Quizplus · Accepted Answer

The EDLP strategy tends to reduce advertising and operating expenses because it eliminates the need for frequent price promotions and price changes. By keeping prices consistently low, retailers can avoid spending money on advertising and merchandising to promote sales or clear out slow-moving inventory. Option A is incorrect because the EDLP strategy aims to provide consistently low prices for all customers, not just those who are willing to pay higher prices. Option B is partially correct because the EDLP strategy may reduce the amount of slow-selling merchandise, but it does not necessarily guarantee that all slow-selling items will be sold. Option D is incorrect because the EDLP strategy is not designed to create excitement or draw a lot of customers through sales events or promotions, but rather through the promise of low prices every day.

Which of the Following Is an Advantage of Using the Everyday