Phar-out Pharmacy will advertise a price of an over-the-counter drug at or below their cost. The intended goal of this loss leader strategy is to:

Question

Quizplus · Accepted Answer

The purpose of the loss leader strategy is to attract customers to the store with the low-priced item, so they can potentially purchase other items while they are there. By building traffic and increasing the customer base, Phar-out Pharmacy can potentially increase their overall sales and profits in the long term.

Phar-Out Pharmacy Will Advertise a Price of an Over-The-Counter Drug