As the CEO of Chip City, a chain of home electronics stores, Jason is struggling with ways to attract customers to his stores. One of his employee suggests to temporarily reduce the price of a few items in the store below cost to drive traffic into the store. This employee is suggesting the use a(n) _____ strategy.

Question

Quizplus · Accepted Answer

The employee is suggesting the use of a loss-leader pricing strategy, which involves temporarily reducing the price of a few items below cost to attract customers to the store in the hopes that they will also purchase other items at regular prices. This is a common strategy used by retailers to increase traffic and sales in the short term.

As the CEO of Chip City, a Chain of Home