The craft store marked skeins of embroidery thread down to a quarter apiece to attract more customers into the store.This was below the store's cost.The skeins of thread was intended to be a _____ to increase store traffic:
A)markdown
B)loss leader
C)differentiated product
D)bargain leader
E)customer-targeted product

Question

Quizplus · Accepted Answer

A loss leader is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. In this case, selling skeins of embroidery thread below cost to increase store traffic is a classic example of a loss leader strategy.

The Craft Store Marked Skeins of Embroidery Thread Down to a Quarter