Question
Walmart often uses the "Everyday Low Price" (EDLP)strategy. What is one of the primary pricing strategies frequently used by Walmart Economy pricing Premium pricing Penetration pricing Price skimming
Answer
4.7
(308 Votes)
Ulysses
Professional · Tutor for 6 years
Answer
A
Explanation
Walmart is globally acclaimed for its amiable pricing approach; employing a strategy called Everyday Low Price (EDLP). The meaning of this strategy is included in its name - Walmart continuously aims to present prices to their clients which are lower-than-average, not offering frequent sales or discounts, but instead keeping the prices at a steady low level. Therefore, the primary pricing strategy used by this company aligns with economy pricing over premium pricing, penetration pricing or price skimming. The premium pricing model typically identifies with high value goods whereas penetration pricing and price skimming incorporate reducing prices to a lower level in order to attract new customers or deleting lower-priced products progressively, both of which are non-derivative to Walmarts EDLP strategy.