When consumers relish the challenge of getting the lowest price and are willing to expend the time and effort to seek out the lowest price every time, retailers should use the ______ pricing strategy.

• A. High/Low
• B. EDLP
• C. Penetration
• D. Cost-plus

Answer: (A)

The idea being tested is matching the pricing approach to shoppers who love the hunt for a bargain. When consumers relish the challenge of finding the lowest price and are willing to spend time seeking out deals, a High/Low pricing approach fits best. This strategy alternates between higher regular prices and frequent promotions, discounts, or sales, creating excitement and the satisfaction of scoring a lower price after searching. It specifically targets bargain-hunters who enjoy the pursuit and the payoff. In contrast, an Every Day Low Pricing approach offers consistently low prices with little need to search, which doesn’t satisfy the thrill of the hunt. Penetration pricing aims to gain market share with low entry prices, not to cater to deal-seekers who chase occasional savings. Cost-plus pricing centers on margins based on costs, without tying prices to consumer bargain-hunting behavior.