Which type of strategy is Costco using to convince consumers to use its pharmacies rather than its competitors?

The strategy used by Costco is the pricing strategy, specifically the penetration pricing strategy. A pricing strategy refers to the business's method of pricing its products and services. A pricing strategy depends on the customer's goal in the market; that is, a company or firm will price its products depending on what they want to achieve. The penetration strategy is a strategy used by businesses to attract customers for a new product with lower prices. For Costco, it applied the penetration strategy to attract customers into purchasing the product by selling it at lower prices than its competitors.