What is a potential problem with a high-low pricing strategy?

A. It confuses and frustrates customers.
B. It places too much emphasis on nonprice competition.
C. It teaches customers to wait for sales and therefore reduces profits.
D. It is difficult to implement.

A potential problem with a high-low pricing strategy is that it teaches customers to wait for sales, thereby reducing profits. When customers anticipate discounted prices, they may delay purchases until a sale occurs, impacting the company's revenue. This behavior can lead to a decrease in overall profitability as customers hold off buying at regular prices.

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What is a potential problem with a high-low pricing strategy?A. It confuses and frustrates customers.B. It places too much emphasis on nonprice competition.C. It teaches customers to wait for sales and therefore reduces profits.D. It is difficult to implement.

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Other Questions

What is a potential problem with a high-low pricing strategy?

A. It confuses and frustrates customers.
B. It places too much emphasis on nonprice competition.
C. It teaches customers to wait for sales and therefore reduces profits.
D. It is difficult to implement.