The owner of a flower shop decided to sell a dozen red roses for $13.50.He hopes the below-cost price for the roses will attract current and new customers who will also buy regularly priced items.The manager is encouraging store patronage through:

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Leader pricing is a pricing strategy where a business offers a discounted price on a popular or in-demand product to attract customers, with the hope that they will also purchase regularly priced items. In this case, the owner of the flower shop is using leader pricing by selling a dozen red roses below cost to attract customers and encourage them to purchase other items at regular prices.

The Owner of a Flower Shop Decided to Sell a Dozen