Examples of Hi-low price in the following topics:
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- Everyday low price is a pricing strategy offering consumers a low price without having to wait for sale price events or comparison shopping.
- Everyday low price (EDLP) is a pricing strategy promising consumers a low price without the need to wait for sale price events or comparison shopping.
- One 1994 study of an 86-store supermarket grocery chain in the United States concluded that a 10% EDLP price decrease in a category increased sales volume by 3%, while a 10% Hi-Low price increase led to a 3% sales decrease; but that because consumer demand at the supermarket did not respond much to changes in everyday price, an EDLP policy reduced profits by 18%, while Hi-Lo pricing increased profits by 15%.
- Its everyday low prices are available to everyone.
- Translate the meaning of the EDLP (everyday low price) pricing strategy
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- High-low pricing is a strategy where most goods offered are priced higher than competitors, but lower prices are offered on other key items.
- High-low pricing is a method of pricing for an organization where the goods or services offered by the organization are regularly priced higher than competitors.
- High-low pricing is a type of pricing strategy adopted by companies, usually small and medium sized retail firms.
- The way competition prevails in the shoe industry is through high-low price.
- Those firms will follow everyday low price strategy in order to compete in the market.
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- A binding price floor is a price control that limits how low a price can be charged for a product or service.
- A price floor is a price control that limits how low a price can be charged for a product or service.
- For a price floor to be effective, it must be greater than the free-market equilibrium price.
- An example of a price floor is the federal minimum wage.
- If a price floor is set above the equilibrium price, consumers will demand less and producers will supply more.
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- If, however, a firms wants to position itself as a low-cost provider, it will charge low prices.
- Just as they do with high-end providers, consumers know what to expect when they see low prices.
- Both a price that is too high and one that is too low can limit growth.
- If, however, a firm wants to position itself as a low-cost provider, it will charge low prices.
- Just as they do with high-end providers, consumers know what to expect when they see low prices.
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- But what exactly is "price?
- Further, if one can negotiate a deal reducing the price by USD 15,000, that would be his incentive to purchase.
- The latter role for price acknowledges that man's response to price is sometimes unpredictable and pretesting price manipulation is a necessary task.
- If Louis Vuitton merchandise was offered at low prices it might significantly undermine the brand value, much of which is based upon exclusivity.
- Differentiate between cost, customer's view of price, and society's view of price
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- Competitive-based pricing, or market-oriented pricing, involves setting a price based upon analysis and research compiled from the target market .
- For instance, if the competitors are pricing their products at a lower price, then it's up to them to either price their goods at a higher or lower price, all depending on what the company wants to achieve.
- One advantage of competitive-based pricing is that it avoids price competition that can damage the company.
- The price may also barely cover production costs, resulting in low profits.
- Status-quo pricing, also known as competition pricing, involves maintaining existing prices or basing prices on what other firms are charging.
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- Demand-based pricing, also known as customer-based pricing, is any pricing method that uses consumer demand - based on perceived value - as the central element.
- These include: price skimming, price discrimination, psychological pricing, bundle pricing, penetration pricing, and value-based pricing.
- Price skimming is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time.
- Penetration pricing is the pricing technique of setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers.
- By definition, long term prices based on value-based pricing are always higher or equal to the prices derived from cost-based pricing.
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- Information costs influence the bond prices and interest rates.
- We include these costs in the bond's market price and interest rate, and they raise the cost of borrowing.
- We can use the demand and supply analysis to create two markets for the high and low information- cost bond markets.
- Thus, investors are attracted to the low-information cost bonds, boosting their demand for low information cost bonds, increasing the market price and decreasing market interest rate.
- Therefore, low-information-cost bonds pay a lower interest rate.
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- Predatory pricing is the practice of selling a product or service at a very low price, intending to drive competitors out of the market.
- Predatory pricing is the practice of selling a product or service at a very low price, with the intention of driving competitors out of the market, or create barriers to entry for potential new competitors.
- Economists argue that the competitors (the 'prey') know that the predator cannot sustain low prices forever, so it is essentially a game of chicken.
- This is known as 'low-cost signalling'.
- Low oil prices in the 1990's were considered a case of alleged predatory pricing.
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- Non-price competition involves firms distinguishing their products from competing products on the basis of attributes other than price.
- Since price competition can only go so far, firms often engage in non-price competition.
- It can be contrasted with price competition, which is where a company tries to distinguish its product or service from competing products on the basis of a low price.
- Firms will engage in non-price competition, in spite of the additional costs involved, because it is usually more profitable than selling for a lower price and avoids the risk of a price war.
- Its prices are low, but not necessarily the lowest.