The Wine Cabinet, a store that features fine wines from all over the world, consistently prices The Complete Wine Course at $10.99. It sells this book at a price far below its regular retail price of $25.95 in order to attract wine shoppers to its store and increase its wine sales. This would be an example of:
A) a single-price strategy.
B) leader pricing.
C) cost-plus pricing.
D) price lining.
E) penetration pricing.

Question

Quizplus · Accepted Answer

Leader pricing is a strategy where a product is sold at a price lower than its market cost to stimulate sales of more profitable products or services. In this case, The Wine Cabinet sells The Complete Wine Course at a significantly reduced price to attract customers, hoping to boost sales of its wines.

The Wine Cabinet, a Store That Features Fine Wines from All