Pricing Strategies And Marketing Strategies

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Pricing strategies can vary from offering relatively stable prices across a wide range of products, which is known as Everyday Low Pricing (EDLP) or Promotional Pricing (PROMO) which involves emphasising deep and frequent discounts on smaller sets of goods (Ellickson and Misra, 2008). The EDLP store adopts a constant everyday low prices across a wide range of product categories, whereas PROMO or Hi-Lo stores occasionally price a category at the regular price or at a deep discount (Bell and Lattin, 1998). Ellickson and Misra (2008) argue that the concept of choosing the best pricing strategy is a complex process as it forces firms to balance the preferences of their consumers, as well as taking into account their competitors performances in terms of the store pricing and market share. Supermarket Pricing Strategies – (Ellickson and Misra, 2008) Ellickson and Misra (2008) established that supermarkets typically cluster in terms of pricing strategies, and therefore stores using the same strategies are likely to be found within close proximity of each other. Evidence from the study showed that consumer demographics played a significant role in the choice of pricing strategy. The result from the study carried out by using a discrete choice model which explains and predicts choices between two or more discrete alternatives; which in this case the study focused on three choices EDLP, PROMO and Hybrid. The study demonstrated that demographics and firm characteristics are
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