A temporary reduction in price, which may involve pricing at below cost, and which is designed to increase patronage is known as a(n):
A) rebate.
B) allowance.
C) loss leader.
D) discount.
E) special price.

Question

Quizplus · Accepted Answer

A loss leader is a pricing strategy where a product is sold at a lower price than its market cost to attract customers. This is typically done with the intention of making up for the temporary loss through increased sales of other products or services.

A Temporary Reduction in Price, Which May Involve Pricing at Below