[1] Prospective customers may be unaware of a product's typical market price, or have a strong belief that "discount" is synonymous with "low price", or have strong loyalty to the product, brand or retailer.
Consumers with higher income strongly prefer the high-low pricing and they shop frequently in the brand stores they like.
[3] There are many big firms using this type of pricing strategy (including, in North America, Reebok, Nike, and Target).
Competition in shoemaking and the fashion industry is partly through high–low pricing (for example Macy's, Nordstrom).
But some firms will not provide discounts and work on a fixed rate of earnings following everyday low price strategies to compete in the market.