After looking at the ads in her Sunday paper,Ruby decided to visit a local nursery and buy potting soil at $1.99 a bag.The regular price is $4.99 a bag.While Ruby was there she also purchased three bushes,six flowering plants,and a bird bath.You can infer from this information that the nursery used the bags of potting soil as a ________.
A)loss leader
B)freemium
C)bait-and-switch
D)price line
E)reference price

Question

Quizplus · Accepted Answer

The fact that the regular price of the bags of soil is $4.99 and they are being sold for $1.99 suggests that the nursery is using them as a loss leader - a product that is sold at a loss in order to attract customers and encourage them to make additional purchases at full price.

After Looking at the Ads in Her Sunday Paper,Ruby Decided