Which of the following statements is true of loss-leader pricing?
A) It is applicable to all products sold in a department store.
B) It is legally accepted worldwide.
C) It is closely related to high/low pricing.
D) Its goal is to send consumers a message about the exclusivity of a product.

Question

Quizplus · Accepted Answer

Loss-leader pricing is a strategy where a product is sold at a low price to attract customers, who may then purchase other higher-margin items. This is related to high/low pricing, where prices fluctuate to attract customers.

Which of the Following Statements Is True of Loss-Leader Pricing