Marshmallow Systems is a start-up equipment manufacturer, and its main product is a smartphone.The firm sells the smartphone at cost, that is, the price is exactly the actual cost of production.The firm's intention behind pricing the phone this way is to build its customer base.In the context of pricing models, the strategy used by Marshmallow Systems is the

Question

Quizplus · Accepted Answer

Marshmallow Systems is using a loss leader strategy, as they are pricing their main product, the smartphone, at cost to attract customers and build their customer base. This strategy involves selling a product at a loss or at cost to attract customers and increase sales of other profitable products or services.

Marshmallow Systems Is a Start-Up Equipment Manufacturer, and Its Main