Final answer:
The Canadian Tire Company uses everyday low pricing (EDLP) and price bundling as its pricing strategies. EDLP involves offering consistent low prices to attract customers, while price bundling offers discounted prices for purchasing a combination of products or services.
Step-by-step explanation:
The Canadian Tire Company uses a pricing strategy known as everyday low pricing (EDLP). This means that Canadian Tire sets its prices lower than or equal to its competitors on a consistent basis, rather than relying on frequent sales or temporary discounts. By offering low prices year-round, Canadian Tire aims to attract customers and build long-term relationships based on trust and value.
Additionally, Canadian Tire also utilizes price bundling in its pricing strategy. This involves offering a combination of products or services at a discounted price when purchased together. For example, Canadian Tire may bundle a set of tools with a toolbox at a lower price compared to buying them separately. Price bundling can incentivize customers to purchase more items and increase overall sales.
Overall, Canadian Tire focuses on providing competitive prices consistently through EDLP and uses price bundling to offer additional value to customers.