What does everyday low pricing aim to reduce?

Everyday low pricing (EDLP) is a strategy that retailers use to offer consistently low prices on products rather than relying on frequent sales or discounts. This approach is designed specifically to minimize price variability and alleviate consumer anxiety surrounding pricing. When consumers know that they can consistently find low prices, it helps build trust and loyalty, as they feel they do not have to wait for sales events to get the best deal.

By offering a stable price point, retailers aim to establish a straightforward shopping experience, where customers can shop with the confidence that they are getting a good price at any time. This reduces the stress and uncertainty that can come with fluctuating prices, where consumers might worry about missing out on sales.

The other options present concepts that do not align with the primary goal of everyday low pricing. For instance, high-demand products aren't negatively affected in terms of overall sales because consistency in pricing can actually lead to increased volume sales. Product bundling strategies are different in focus, as they involve grouping products together and might not relate directly to pricing strategies like EDLP. Lastly, while reference pricing can be a part of consumers’ shopping behavior, EDLP specifically addresses price stability rather than eliminating the need for reference pricing altogether.