In the context of pricing models, a ________ is a product or service that is sold at a nonoperating loss to simply get customers in the store.

Question

Quizplus · Accepted Answer

A loss leader is a pricing strategy where a product or service is sold at a price below its market cost to attract customers to buy other profitable products or services. The purpose of a loss leader is to generate traffic and increase sales for the business as a whole, even though the individual loss-leading product/service is not profitable.

In the Context of Pricing Models, a ________ Is a Product