Refers to regular prices of the products are set higher than Everyday Low Price (EDLP) competitors, however, merchandises are also frequently on sales at lower prices. To attract customers, Robinsons strive to have wider or more targeted assortments, exclusive products, more convenient locations and better service.
Benefits of Hi–Lo Pricing:
1) Price discrimination to achieve higher profits
Price discrimination is a practice that Robinsons use to charge different prices for the same items to different customers. They use loyalty programs like membership and OCBC Robinsons VISA Platinum Card to give more privileges to their loyal customers when they shop in Robinsons. These allow their customers to enjoy discounts and rebates when they shop at Robinsons, thus creating higher possibility of repeat purchases and help increase profits.
2) More excitement
Besides giving privileges to their loyal customers, Robinsons also rewards their first 100 supportive customers with an attractive exclusive set of facial products. This would enhance their customers shopping experience by creating more excitement when they make their purchase in Robinsons.
3) Build short-term sales and generates traffic
With a big discount up to 70% storewide, this would definitely increase in the customers traffic flow and help boost the sales of slow-moving products.
Comparative Price Advertising
Is comparing price of merchandise offered for sale with a higher “regular” price.
Robinsons always tend to advertise and lure its customers specially its members by advertising their discounts like “Up to 70% off” but they have always been honoring that unless they really ran out of stock.
Bait and Switch
Lure customers into store by advertising a product at a lower than usual price (the bait) and then induces customer to switch to higher priced model (the switch).
Odd Pricing/ Psychological Pricing
A price that ends in an odd number just under a round number to make it seem or look cheaper, e.g. 9.90, 19.90, 29.90
Robinsons has been using this strategy especially for its shoes and bags section to make it seem cheaper and this can help customers to consider maybe getting another pair or 2.
A price that ends in an odd number just under a round number to make it seem or look cheaper, e.g. 9.90, 19.90, 29.90
Robinsons has been using this strategy especially for its shoes and bags section to make it seem cheaper and this can help customers to consider maybe getting another pair or 2.
