Question

It is important to Joanne to get value for her money, but she does not want to spend time comparison shopping. Joanne will likely respond to _______ pricing, but not to _______ pricing.

A) high/low; EDLP
B) premium; high/low
C) high/low; premium
D) price skimming; high/low

Answer 1

B) premium; high/low.

Joanne prefers EDLP for consistent low prices without comparison shopping and dislikes high/low pricing due to the need to monitor sales.

Step-by-step explanation:

Joanne will likely respond to EDLP (Everyday Low Pricing) because it offers consistent low prices without the need to comparison shop. However, she is not likely to respond well to high/low pricing, which involves periodic discounts of higher-priced items, requiring customers to monitor prices and shop during sales. Therefore, the correct answer is B) premium; high/low.

Answer 2

Joanne will likely prefer Everyday Low Pricing (EDLP) due to her interest in value without comparison shopping and would not be drawn to high/low pricing, which requires shopping around for deals.

Step-by-step explanation:

Joanne, who seeks value for money without the effort of comparison shopping, will likely respond well to Everyday Low Pricing (EDLP), but not to high/low pricing. EDLP is a pricing strategy that retailers use to position themselves as the low-price leader by consistently keeping their prices low, as opposed to offering sales or promotions on an irregular basis. This strategy benefits consumers like Joanne, who value simplicity and consistent low prices over the thrill of 'getting a bargain'. On the other hand, high/low pricing is a promotional strategy where prices are regularly discounted on a short-term basis to attract customers who enjoy the hunt for bargains. These customers are willing to spend time comparison shopping to take advantage of these deals. Since Joanne does not want to engage in comparison shopping, she would not be attracted to the high/low pricing strategy.