Explain the concept of the highlow strategy Why is this an a

Explain the concept of the high/low strategy. Why is this an attractive strategy to marketers?

Solution

High-low pricing is a pricing strategy in which companies offer the product at a high price when the product gets launched and reduce the price later in sales events or by offering coupons. This is an attractive strategy to the marketers because with high pricing they successfully establish the value of the product in the mind of consumers and when its done, with low pricing they attract more customers and tempt them to buy the same product at a lower price and maximize the sale of that product, which eventually increases the company’s profit.