Several major retailers have begun to test the extreme markdown strategy that lies behind popular dollar stores such asDollar General and Dollar Tree Stores. Kroger, Walmart, andothers have opened sections in selected stores that featureitems from snacks to beauty supplies, all priced at $1. Is thisexperiment simply a test of pricing strategy? What else mightmotivate these retailers to offer such deep discounts?
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
Several major retailers have begun to test the extreme markdown strategy that lies behind popular dollar stores such as
Dollar General and Dollar Tree Stores. Kroger, Walmart, and
others have opened sections in selected stores that feature
items from snacks to beauty supplies, all priced at $1. Is this
experiment simply a test of pricing strategy? What else might
motivate these retailers to offer such deep discounts?
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