EDLP, Hi-Lo, and Margin Arithmetic

  title={EDLP, Hi-Lo, and Margin Arithmetic},
  author={S. J. Hoch and X. Dr{\`e}ze and Mary E. Purk},
  journal={Journal of Marketing},
  pages={16 - 27}
  • S. J. Hoch, X. Drèze, Mary E. Purk
  • Published 1994
  • Business
  • Journal of Marketing
  • The authors examine the viability of an “everyday low price” (EDLP) strategy in the supermarket grocery industry. In two series of field experiments in 26 product categories conducted in an 86-store grocery chain, they find that a 10% EDLP category price decrease led to a 3% sales volume increase, whereas a 10% Hi-Lo price increase led to a 3% sales decrease. Because consumer demand did not respond much to changes in everyday price, they found large differences in profitability. An EDLP policy… CONTINUE READING

    Figures and Tables from this paper.

    An empirically derived taxonomy of retailer pricing and promotion strategies
    • 116
    • Highly Influenced
    • PDF
    Repositioning Dynamics and Pricing Strategy
    • 20
    • PDF
    Supermarket Competition: The Case of Every Day Low Pricing
    • 288
    • Highly Influenced
    • PDF
    Benchmarking Retail Productivity Considering Retail Pricing and Format Strategy
    • 36
    • PDF
    Supermarket Pricing Strategies
    • 204
    • PDF