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...

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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).
DOI:
Publisher: Esic Business & Marketing School
Usage rights: Reconocimiento - NoComercial (by-nc)
Subjects: 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
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