Leader pricing:
A) seeks a big profit on the leader items.
B) is usually used for a retailer's major product line-to give it a competitive advantage.
C) is different from bait pricing in that the marketing manager really expects to sell leader priced items.
D) assumes that some part of the demand curve is upward sloping to the right.
E) is banned in interstate commerce.

Question

Quizplus · Accepted Answer

Leader pricing involves setting a low price on a popular item to attract customers into the store, with the expectation that they will purchase additional items at regular prices. Unlike bait pricing, the intention is to actually sell the leader priced items.

Leader Pricing