What pricing approach offers frequent discounts based on stated regular prices?

The high/low pricing strategy is characterized by offering regular prices that are often inflated, allowing for frequent sales and discounts. Retailers using this approach attract customers with the allure of lower prices during promotions while maintaining higher list prices at other times. This strategy capitalizes on consumer psychology, where customers perceive they are getting a good deal when they purchase items at a discount from the stated regular price. The perceived value of the discount can increase foot traffic and overall sales, as consumers are drawn in by the idea of purchasing at a reduced price.

In contrast, the other pricing strategies listed focus on different value propositions; for example, even pricing tends to involve pricing items at whole numbers to simplify transactions, while variable pricing adjusts based on demand or other conditions without the specific promotional strategy inherent in high/low pricing. Prestige pricing aims to convey a sense of luxury and exclusivity through higher price points, rather than focusing on frequent discounts. Each of these strategies serves distinct marketing goals, but high/low pricing specifically takes advantage of frequent discounts to attract consumers and drive sales.