Lowe’s and Home Depot are both home improvement stores that compete for the same customer base. Discuss the following statement in the context of pricing strategies.

“We compared the price (before tax) of 38 commonly purchased products that both Lowe’s and Home Depot offer. These included building materials (such as lumber and drywall) as well as ceramic floor time, wood flooring, paint, and basic tools. The price was essentially the same at both stores, precisely, less than a 1 percent price difference was found. Appliances were also compared and non-sale prices were identical, but depending on the day, one store might drastically undercut the other. Home Depot offers some distinct advantages, however. It regularly holds free weekend workshops designed to familiarize customers with basic home improvement projects; Lowe’s offers nothing comparable. Home Depot is also the best place to rent power tools as a variety of choices are offered; Lowe’s does not provide this service.”

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Pricing strategy is a way that a company uses to price its product There are variou... View the full answer