Everyday Low Price or Sale Price

Abstract

The effectiveness of the use of an everyday low price strategy for fine jewelry at a department store chain that traditionally had used the sale price strategy prompted this article. The major objective was to attempt to determine the reasons for the failure of the everyday low price strategy. An experimental study manipulating both the context of the presentation and the consumer framing of a price offering indicated that these two factors play an important role in consumer perceptions of price offerings.

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