When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, this is called
A) special-event pricing.
B) EDLP.
C) net pricing.
D) loss-leader pricing.
E) bargain provision.

Question

Quizplus · Accepted Answer

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, this is called loss-leader pricing. It is a strategy of setting a low price and losing profit on a product in the hopes that the customers will come into the store and buy other products as well.

When Supermarkets and Department Stores Drop the Price on Well-Known