A local hardware store offers flashlights at "3 for a dollar." This action would indicate which of the following strategies?
A)psychological pricing
B)loss-leader pricing
C)value-based pricing
D)fair pricing

Question

Quizplus · Accepted Answer

The hardware store offering flashlights at "3 for a dollar" is utilizing the strategy of loss-leader pricing, which involves offering a product at a very low price in order to attract customers to the store, with the hope that they will also purchase other more profitable items while they are there. It is an advertising tactic designed to lure customers into the store for one product, with the expectation that they will buy other items as well.

A Local Hardware Store Offers Flashlights at "3 for a Dollar