Everyday low price

[2] One 1992 study stated that 26% of American supermarket retailers pursued some form of EDLP, meaning that the other 74% promoted high-low pricing strategies.

In contrast, "expected price shoppers" are unwilling to do as much pre-purchase research and less likely to stockpile discounted items.

High-low pricing strategies generally result in lower variable costs, since promotional retailers can sell more products by offering discounts.

Not only is the initial cost high, but the EDLP strategy must be maintained long enough for consumers to associate lower prices with the brand.

[5] Kmart's signature "blue light special" is an example of in-store advertising used to promote a temporary discount as part of the high-low pricing strategy.

Walmart's success in EDLP and the decline of other retailers have followed the long-term trend in this market and in consumer buying habits.

While consumers state in surveys that they prefer the convenience and savings of EDLP, they actually tend to purchase more when high-low pricing strategies are employed.