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In marketing, Everyday Low Pricing and High/Low Pricing are two key pricing strategies.

Brands select between EDLP and high/low pricing depending on target market preferences, marketing goals, product attributes, and competitive landscape.

EDLP offers consistently low prices every day, creating value for price-sensitive customers.

It reduces customers' need to compare prices, leading them to purchase in bulk as they prefer to buy from a single outlet.

This strategy fosters customer loyalty and cuts marketing costs but may invite price wars and lower perceived product quality.

Giant retailers like Walmart utilize this strategy.

On the other hand, High/Low Pricing involves higher everyday prices with frequent promotions on selected items.

It creates a sense of urgency and excitement for cost-conscious customers awaiting a sale as they perceive value by contrasting regular prices with sale prices, often leading to impulse buying.

Due to this, the business enjoys higher profit margins, but there may be potential brand dilution due to frequent discounts.

Apparel and clothing retailers, such as Nike, utilize this strategy.