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Would it be smart for a grocery store manager to stick with a middle of the road pricing strategy for all products?
Would it be smart for a grocery store manager to stick with a middle of the road pricing strategy for all products?
Expert Solution
Middle of the road pricing strategy is a method specially used to price the good, not high or low, to capture both high income and low-income earners. It makes products affordable in the market for all levels of customers.
It would be smart for a store manager to stick with the middle of the road pricing strategy if its returns are promising. This is because middle pricing increases sales because of the affordability of the goods in the market. It also encourages production because both the customer and the seller agree with the pricing. Since groceries are first moving products, the seller avoids losses from spoilt goods prices to attract the customers.
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