If Lion Mart advertises a 2-liter bottle of Pepsi for 89 cents to generate store traffic that will increase the purchasing of other items at regular prices,the grocer is using
A) reference pricing.
B) a price leader.
C) special-event pricing.
D) comparison discounting.
E) professional pricing.

Question

Quizplus · Accepted Answer

Lion Mart is using a price leader strategy by advertising the low price on Pepsi to attract customers to the store, with the hope that they will also purchase other items at regular prices. This is a common strategy used by retailers to drive store traffic and increase overall sales.

If Lion Mart Advertises a 2-Liter Bottle of Pepsi for 89