After looking at the ads in her Sunday paper, Ruby decided to visit a local nursery and buy potting soil for her plants 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 potting soil is significantly higher than the sale price suggests that the nursery is using the bags of potting soil as a loss leader, a product sold at a low price to attract customers to the store in the hopes that they will also buy other items at full price.

After Looking at the Ads in Her Sunday Paper, Ruby