METS Pens, a pen manufacturing company, sometimes gives away some of its gel pens practically for free but reaps handsome profits as customers buy pen refills. In the context of pricing strategies, it is evident that METS Pens has adopted the strategy of _____.

Question

Quizplus · Accepted Answer

METS Pens is using a loss-leader pricing strategy, where they sell the initial product (gel pens) at a low price or even at a loss to attract customers, with the expectation that they will make profits from the sale of complementary products (pen refills).

METS Pens, a Pen Manufacturing Company, Sometimes Gives Away Some