A retail firm that uses leader pricing is:
A) engaged in legal, but unethical price gouging.
B) cutting the regular price on a few items with the hope of attracting customers.
C) leading the industry in pricing and encouraging its competitors to raise their prices, too.
D) selling its most popular products at higher prices.
E) raising the price of its best-selling products.

Question

Quizplus · Accepted Answer

Leader pricing involves reducing the price of specific items to draw customers into the store, hoping they will purchase other items at regular prices. It is a common and legal marketing strategy.

A Retail Firm That Uses Leader Pricing Is