EDLP versus HI-LO pricing
EDLP versus HI-LO pricing
ABSTRACT The main objective of this paper is to offer a description and comparison between every day low prices (EDLP) and high and low (Hi-Lo) pricing strategies, furthermore a customer profile of both types of retailers’ clients is presented. We focused on retailing of frequently purchased product...
| Translated title: | Precios siempre bajos frente a los precios altos y bajos |
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| Journal Title: | ESIC MARKET |
| First author: | Javier Rondán |
| Other Authors: | Jorge Arenas |
| Traslated keyword: | |
| Language: | English Spanish |
| Get full text: | http://www.esic.edu/editorial/editorial_revista_esic_contenidos.php?id=84 |
| Resource type: | Journal Article |
| Source: | ESIC MARKET; Vol 118, (Year 2004). |
| Publisher: | Esic Business & Marketing School |
| Usage rights: | Reconocimiento - NoComercial - SinObraDerivada (by-nc-nd) |
| Categories: | Social Sciences/Humanities --> Business |
| Abstract: | ABSTRACT The main objective of this paper is to offer a description and comparison between every day low prices (EDLP) and high and low (Hi-Lo) pricing strategies, furthermore a customer profile of both types of retailers’ clients is presented. We focused on retailing of frequently purchased products. The multinomial nested logit model has been applied to a consumer panel data. The main conclusions of the paper are that EDLP chains offer prices and promotional activity below Hi-Lo chains |
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| Translated abstract: | RESUMEN El principal objetivo de este trabajo es estudiar, describir y comparar dos estrategias de precios muy utilizadas en el comercio minorista, la de precios altos y bajos y la de precios bajos todos los días, además de ofrecer un perfil tipo de clientes asiduos a cadenas minoristas con una u otra filosofía de precios. Nos centramos en el comercio minorista de productos de compra frecuente, a través de un panel de consumidores y aplicando el logit multinomial jerárquico concluimos que las cadenas con precios siempre bajos ofrecen menores precios y una menor actividad promocional que las que utilizan los precios altos y bajos. A |
